Token Standard Explained: The Core of Your Crypto Asset
A token standard is a set of rules that defines how a digital token behaves on a blockchain. It ensures compatibility with wallets, exchanges, and other applications. Choosing the right standard, like Solana's SPL or Token-2022, is a foundational decision for any creator launching a token.
Key Points
- 1A token standard is a rulebook for how tokens function on a blockchain.
- 2On Solana, the main standards are SPL (older) and Token-2022 (newer with more features).
- 3Token-2022 enables advanced functions like transfer fees, which provide 1% perpetual creator revenue post-graduation.
- 4Choosing the wrong standard can limit your token's functionality and future potential.
- 5A launchpad that supports Token-2022, like Spawned, future-proofs your project.
What is a Token Standard?
The Invisible Rulebook Powering Every Token
Think of a token standard as the DNA of your digital asset. It's a formal, technical specification that developers agree to follow when creating tokens on a specific blockchain. This shared rulebook is what allows different systems—like wallets, decentralized exchanges (DEXs), and launchpads—to recognize and interact with your token correctly. Without a standard, every token would be a unique, incompatible island. For creators, understanding this is the first step in ensuring your token works as intended across the entire Solana ecosystem. It dictates fundamental behaviors like how tokens are created, transferred, and burned.
SPL vs. Token-2022: Solana's Key Standards
Solana has two primary token standards, and the choice between them has significant implications for creators.
SPL Token Standard: This is the original, foundational standard. It's widely supported and handles basic token operations perfectly: minting, transferring, and burning. Most existing Solana tools and platforms are built for SPL tokens first.
Token-2022 Standard: This is an upgraded extension of SPL. It introduces new, programmable features that were impossible in the original standard. The most critical for creators is transfer hooks, which allow for logic to be executed on every token transfer. This enables features like the 1% perpetual fee for creators after graduating from a launchpad. It also supports confidential transfers and interest-bearing tokens.
The key difference is future-proofing. While SPL is sufficient for a simple meme coin, Token-2022 opens the door to sophisticated tokenomics and sustainable creator revenue models.
Why Your Token Standard Choice Matters
Beyond Code: Real Consequences for Your Project
Picking a standard isn't just a technical checkbox; it directly impacts your project's potential and revenue.
- Ecosystem Compatibility: Your token must work with Raydium, Jupiter, Phantom, and other essential tools. The right standard ensures smooth listing and trading.
- Functionality & Features: Want to implement a 1% trade fee that goes back to the project treasury forever? That requires Token-2022. SPL cannot do this natively.
- Future-Proofing: Building on Token-2022 means your token can adopt new features as they are developed on Solana, without needing a costly migration.
- Creator Revenue: This is the most practical difference. A launchpad using Token-2022 can embed a perpetual fee mechanism. For example, after your token graduates from Spawned, a 1% fee on every trade can be directed to a creator wallet, creating ongoing funding. On a standard SPL launchpad, this is not possible.
How to Choose the Right Token Standard: A 3-Step Guide
Follow this simple decision framework before you launch.
Step 1: Define Your Long-Term Goal. Ask: "Is this a simple meme coin, or do I want to build a project with sustainable economics?" If it's the latter, you need advanced features.
Step 2: Evaluate Revenue Needs. If generating ongoing, protocol-level revenue from trading activity (like a 1% fee) is important, Token-2022 is mandatory. Calculate the potential: 1% of a $1M daily volume is $10,000 daily for the treasury.
Step 3: Check Launchpad & Tool Support. Not all launchpads support Token-2022. You must use a platform, like Spawned, that is built for it. Verify that the DEXs you plan to list on also support the standard.
Verdict: The Clear Choice for Serious Creators
Token-2022 Isn't Just an Option; It's an Advantage
For any creator launching a token on Solana with ambitions beyond a short-term trend, Token-2022 is the necessary standard.
The ability to embed enforceable, perpetual creator fees (like the 1% post-graduation fee) transforms a token from a speculative asset into a project with a built-in funding mechanism. While SPL tokens are simpler and have slightly broader immediate support, the ecosystem is rapidly adopting Token-2022. Launching with the older standard today means voluntarily limiting your project's potential and locking yourself out of the most significant innovation in Solana tokenomics.
Recommendation: Use a launchpad that natively supports and advocates for Token-2022 from the start. This ensures your token is born with its full capabilities and is ready for the future of decentralized finance.
Launch Your Token with the Future-Proof Standard
Ready to Build on the Right Foundation?
Don't let a foundational technical choice limit your project's growth. Spawned is built for the Token-2022 standard, enabling advanced features like perpetual creator fees from day one.
Launching is simple: a 0.1 SOL fee (~$20), and you get the Token-2022 standard plus an AI website builder included. This setup ensures your token is equipped for sustainable success, not just a initial launch.
Launch your Token-2022 token on Spawned and build with the standard designed for creator economics.
Related Terms
Frequently Asked Questions
No, you cannot change the fundamental standard (e.g., from SPL to Token-2022) of an existing token. The standard is baked into the token's mint address at creation. To "upgrade," you would need to create a completely new token, mint a new supply, and migrate your holders—a complex and often impractical process. This makes choosing the correct standard at launch critically important.
Support is growing rapidly and is now robust among major players. Phantom, Solflare, and Backpack wallets support Token-2022. Leading DEXs like Raydium and Orca support it for trading. Always verify current support for your specific tools, but the ecosystem has largely embraced the new standard. Launchpads like Spawned ensure compatibility.
Transfer hooks allow code to run automatically every time the token is sent. The most direct benefit for creators is the ability to deduct a fee. For instance, Spawned uses this to implement a 1% fee on every trade after a token graduates from its launchpad. This fee goes directly to a designated creator wallet, providing ongoing project revenue without relying on voluntary donations or secondary tools.
The blockchain transaction cost (gas fee) to create a Token-2022 token is marginally higher than an SPL token—often a fraction of a cent more. The real cost consideration is the launchpad fee. For example, Spawned charges a flat 0.1 SOL launch fee for a Token-2022 token, which includes the advanced standard and an AI website builder, representing significant value compared to the limitations of a free SPL-only launch.
Yes. Token-2022 is an extension of the SPL standard. It is fully backward-compatible for all basic functions like transferring, storing in wallets, and trading on DEXs. It simply adds optional, extra capabilities on top. A Token-2022 token behaves exactly like an SPL token unless you actively program its advanced features (like transfer fees) to be used.
The only scenario to choose SPL is if you are launching a purely experimental or joke token where advanced features and perpetual revenue are irrelevant, and you are using a tool that does not support Token-2022 at all. For any project with a roadmap, community goals, or a desire for sustainability, SPL is a limiting choice that forfeits key financial tools.
When you launch a Token-2022 token on a platform like Spawned, a transfer hook program is attached to your token's mint. After graduation, this program is activated. On every single buy and sell trade, the program automatically deducts 1% of the token amount being traded. This 1% is permanently sent to a wallet you control, creating a continuous revenue stream funded by the token's own trading activity.
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