Token-2022 on Solana

Token Standards on Solana

Solana has two token standards:

SPL Token - The original standard. Simple, widely supported.

Token-2022 - Newer standard with additional features. Also called Token Extensions.

Why Token-2022 Exists

Developers wanted features SPL Token didn't have:

• Transfer fees
• Interest-bearing tokens
• Confidential transfers
• Non-transferable tokens
• And more

Token-2022 adds these as optional extensions.

Transfer Fees

The most relevant feature for Spawned tokens. After graduation, tokens use Token-2022 with a 1% transfer fee.

Every transfer:

1. Sender initiates transfer
2. 1% goes to fee recipient
3. 99% goes to receiver

This creates ongoing revenue for creators and rewards for holders.

Other Extensions

Interest-bearing - Token balance grows automatically over time.

Confidential transfers - Amount hidden from public view (while still verifiable).

Transfer hooks - Custom logic executes on every transfer.

Permanent delegate - Someone can always move the token (useful for compliance).

Compatibility

Token-2022 works with most Solana apps, but some older tools don't support it yet. Major wallets (Phantom, Solflare) and DEXs (Raydium, Jupiter) work fine.

For Spawned Users

You don't need to think about this much:

• Buy tokens normally
• Sell tokens normally
• Receive rewards normally

The technical details are handled automatically. The main thing to know: there's a 1% fee on transfers after graduation, which funds holder rewards.