How We Use Token-2022 Transfer Fees

What is Token-2022?

Token-2022 is Solana's modern token standard, extending the original SPL Token program with new features. Spawned uses it for native transfer fees.

Transfer Fee Extension

Every token transfer automatically collects a fee. No wrapper contracts. No DEX requirements. The fee is built into the token itself.

How It Works

1. User initiates transfer
2. Token program calculates fee (1.25%)
3. Fee sent to designated account
4. Remainder reaches recipient

Fee Structure

Total Fee: 1.25%
├── Platform: 0.65%
├── Creator: 0.30%
└── Holders: 0.30%

Technical Details

Fee Configuration

• Fee basis points: 125 (1.25%)
• Maximum fee: Uncapped (proportional always)
• Fee authority: Locked to program PDA

Fee Account

Fees collect in a designated token account. The Spawned program periodically harvests and distributes to:

• Platform treasury
• Creator wallet
• Holder rewards pool

Advantages Over DEX Fees

Universal: Fees apply to ALL transfers, not just DEX trades.

Permissionless: No need to route through specific contracts.

Composable: Works with any wallet, protocol, or dApp.

Limitations

No exemptions: Even transfers between your own wallets incur fees.

Fixed rate: Fee percentage is set at token creation and cannot be changed.

Solana only: Token-2022 is Solana-specific. Other chains need different approaches.

Wallet Compatibility

Most major Solana wallets support Token-2022:

• Phantom ✓
• Solflare ✓
• Backpack ✓
• Ledger ✓

Some older wallets may show incorrect balances. Recommend updating to latest versions.

Fee Harvesting

Accumulated fees can be harvested permissionlessly. Anyone can trigger the harvest instruction, and fees are distributed according to the on-chain configuration.