What is Token-2022? Understanding Solana's New Token Standard

Token-2022 is Solana's next-generation token program that adds powerful extensions to the standard SPL Token. It's backwards-compatible and designed to support advanced use cases.

Why Token-2022?

The original SPL Token Program is simple and efficient, but it lacks features that modern projects need. Token-2022 solves this by adding extensions — optional features that can be enabled at mint creation time.

Key Extensions

Transfer Fee (Transfer Tax)

One of the most popular extensions. It automatically charges a fee on every token transfer:

• Fee Rate: Set as basis points (e.g., 500 = 5%)
• Max Fee: Optional cap on the fee amount
• Fee Collection: Fees are withheld in recipient accounts and can be harvested by the withdraw authority

This is perfect for projects that want to generate revenue from token transfers, fund liquidity pools, or implement deflationary mechanics.

Non-Transferable (Soulbound)

Creates tokens that cannot be transferred after initial minting:

• Tokens are permanently bound to the wallet they're minted to
• Cannot be sold, traded, or transferred
• Perfect for proof-of-attendance, credentials, or governance rights

Other Extensions

Token-2022 also supports:

• Interest-Bearing: Tokens that accrue interest over time
• Permanent Delegate: A permanent authority that can transfer or burn tokens from any account
• Default Account State: New token accounts start frozen
• CPI Guard: Prevents certain cross-program invocations

How 3doxies Uses Token-2022

3doxies automatically detects when your token needs Token-2022. If you enable Transfer Tax or Non-Transferable, your token is created using the Token-2022 program instead of the standard Token Program.

Everything else — metadata, minting, authority management — works the same way. You don't need to worry about the technical differences.

Should You Use Token-2022?

Use Token-2022 if you need:

• Automatic transfer fees for revenue generation
• Soulbound tokens for credentials or governance
• Any of the advanced extensions listed above

Stick with the standard SPL Token if:

• You want maximum compatibility with existing dApps and wallets
• You don't need any advanced extensions
• You want the simplest possible token

Compatibility

Most major Solana wallets (Phantom, Solflare) and DEXs now support Token-2022 tokens. However, some older dApps may not. Always verify compatibility with the platforms you plan to use.