Token Standard Guide: Choosing SPL, ERC-20, or Token-2022
A token standard defines the rules for creating, managing, and transferring digital assets on a blockchain. Choosing the right standard impacts fees, functionality, and long-term success. This guide explains the major standards, their trade-offs, and how to select the best one for your project.
Key Points
- 1Token standards are rulebooks for creating and managing crypto assets on a blockchain.
- 2Solana's SPL standard offers lower fees (often $0.01-$0.10) and faster speed than Ethereum's ERC-20.
- 3Token-2022 is an upgrade to SPL, adding built-in features like transfer fees and interest.
- 4Your choice affects launch costs, ongoing holder rewards, and future upgrade potential.
- 5For most Solana creators, SPL or Token-2022 provides the best balance of cost and features.
What is a Token Standard?
The foundation of every crypto token.
A token standard is a set of technical rules, like a blueprint, that defines how a digital asset (a token) behaves on its blockchain. It ensures all tokens on that network can interact with wallets, exchanges, and smart contracts in a predictable way. Without standards, each token would be incompatible with the ecosystem's core tools.
Think of it like USB standards for crypto: USB-C, USB-A, and Micro-USB all transfer data, but they have different shapes, speeds, and capabilities. Similarly, ERC-20 is Ethereum's standard for fungible tokens, while SPL is Solana's equivalent. Standards dictate core functions like how to transfer tokens, check balances, and approve spending.
Major Token Standards Compared: SPL vs ERC-20 vs Token-2022
Cost, speed, and features differ drastically.
Choosing a standard means choosing an ecosystem, a cost structure, and a feature set. Here’s a detailed comparison of the three most relevant standards for creators today.
| Feature | Solana SPL (Standard) | Ethereum ERC-20 | Solana Token-2022 (Extended) |
|---|---|---|---|
| Network | Solana | Ethereum | Solana |
| Avg. Mint Cost | ~0.01-0.02 SOL ($2-$4) | $50-$150+ in gas fees | ~0.02-0.03 SOL ($4-$6) |
| Avg. Transfer Fee | $0.0001 - $0.01 | $1 - $15+ | $0.0001 - $0.01 |
| Speed (Finality) | ~400ms | ~5 minutes to 15 minutes | ~400ms |
| Key Benefit | Low cost, high speed | Massive ecosystem, liquidity | Native advanced features (e.g., royalties) |
| Best For | New projects, community tokens, micro-transactions | Projects needing deep Ethereum DeFi integration | Projects wanting built-in revenue mechanisms |
Key Takeaway: For creators prioritizing low launch and transaction costs, Solana's standards (SPL or Token-2022) are typically 10-100x cheaper than Ethereum's ERC-20.
Why Your Token Standard Choice Matters
Your token standard isn't just a technical detail—it directly shapes your project's economics, community experience, and growth potential.
- Launch & Transaction Costs: Minting an ERC-20 token can cost over $100 in gas fees. Minting an SPL token on Solana costs about 0.1 SOL (~$20) on a platform like Spawned, with trades costing pennies. This lower barrier allows for smaller, more experimental communities.
- Holder Experience: High Ethereum gas fees ($5-$20 per swap) discourage small traders and community participation. Solana's sub-$0.01 fees make it practical for holders to trade any size.
- Revenue Features: The newer Token-2022 standard allows for native, on-chain transfer fees (e.g., 0.3% per trade). This is a core feature of the Spawned holder rewards model, enabling sustainable creator revenue without complex extra contracts.
- Ecosystem Compatibility: Your token must work with wallets (like Phantom), DEXs (like Raydium), and launchpads. Standards guarantee this. Choosing a less common standard can limit your initial reach.
- Future Upgrades: Standards evolve. Token-2022 is built to be extensible, meaning new features can be added more easily than with the base SPL standard.
How to Choose: A 4-Step Decision Guide
Follow this process to select the right token standard for your specific goals.
Verdict: Which Token Standard Should You Use?
SPL and Token-2022 on Solana offer the best balance for creators.
For the majority of crypto creators launching today, Solana's SPL or Token-2022 standards are the clear recommendation.
Here’s the breakdown:
- Use Standard SPL Token if: You're launching a straightforward community or meme token, want the absolute lowest minting cost, and don't need advanced features like built-in transfer fees yet. It's the simplest path to market.
- Use Token-2022 if: You plan to implement a sustainable revenue model from day one, like the 0.3% creator fee and 0.3% holder rewards offered by Spawned. It's more future-proof and saves you from building complex fee systems later.
- Consider ERC-20 only if: Your project must integrate with specific, well-established Ethereum-only protocols, or your target audience and liquidity are exclusively on Ethereum.
The economic advantage is decisive: launching an SPL token costs ~0.1 SOL ($20) on Spawned, compared to $100+ on Ethereum. This allows you to allocate more resources to marketing and community building. Furthermore, platforms like Spawned that support Token-2022 from launch give you a permanent 1% fee structure post-graduation, a significant long-term benefit.
Final Advice: Start with SPL or Token-2022 on Solana to validate your community and idea with minimal cost. You can always bridge assets or launch a multi-chain version later if Ethereum demand is proven.
Ready to Launch Your Token with the Right Standard?
Understanding token standards is the first step. The next is executing your launch on a platform that supports the best standards for creators.
Spawned is built for Solana's efficient token standards (SPL and Token-2022). When you launch with us:
- Mint an SPL or Token-2022 token for just 0.1 SOL.
- Access our built-in AI website builder, saving $29-$99/month on external tools.
- Automatically implement a sustainable model with 0.3% creator revenue and 0.3% holder rewards on every trade.
- Secure your future fees with a 1% perpetual fee structure upon graduation, thanks to native Token-2022 support.
Don't let complex standards and high fees delay your project. Launch your token on Spawned today and build on the right foundation from the start.
Related Terms
Frequently Asked Questions
For a complete beginner, Solana's standard SPL token is the simplest. Launchpads like Spawned abstract away the technical complexity—you define your token's name, symbol, and supply, and the platform handles the standard creation for a fixed 0.1 SOL fee. You don't need to write code or understand the underlying program. In contrast, creating an ERC-20 token typically requires more technical knowledge or paying a developer, plus unpredictable gas fees.
No, you cannot change the fundamental standard of an existing token. A token's standard is set at creation and is immutable. However, you can create a new token with the Token-2022 standard and migrate your community to it (often through a token swap or migration event). This is why choosing the right standard from the start is important. Platforms supporting Token-2022, like Spawned, let you start with its advanced features from day one.
Yes, SPL tokens are secure. The security comes from the Solana blockchain itself and the audited, native SPL Token Program that all standard tokens use. The program is a core part of Solana's infrastructure, widely used and tested. Security for token holders also depends on the token's specific contract (if it has custom code) and the safety of the launch platform. Using a reputable launchpad reduces risk.
The difference is massive for active traders. A holder making 10 trades with an SPL token might pay a total of $0.10 in fees. Making those same 10 trades with an ERC-20 token on Ethereum could easily cost $50 to $200 in gas fees during network congestion. This high cost on Ethereum severely limits community participation and micro-transactions, which are common in new token communities.
Support is growing rapidly but is not yet universal. Major wallets like Phantom and Backpack support Token-2022. Leading DEXs like Raydium also support it. However, some older tools or aggregators might have limited support. Always check compatibility for your essential tools before launch. Launching on a platform like Spawned ensures your Token-2022 token will work seamlessly within its ecosystem from the start.
You might choose base SPL for maximum compatibility and simplicity if you do not need the advanced features of Token-2022 (like transfer hooks, interest-bearing tokens, or confidential transfers) immediately. The base SPL standard is supported by 100% of Solana tools. It's a proven, straightforward choice for basic utility or meme tokens where advanced functionality isn't part of the initial plan.
The Token-2022 standard introduces a 'Transfer Fee' extension. This allows a token's smart contract to automatically deduct a configurable percentage (e.g., 0.3%) from every transfer or trade. Spawned uses this native feature to implement its 0.3% creator revenue and 0.3% holder reward model directly into the token's logic. This is more efficient and secure than older methods that required separate, complex fee systems.
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