Solana Token Extensions (Token-2022) Guide

In this guide

SPL vs Token-2022: what changes?
Transfer Fee extension
Non-Transferable extension
Interest-Bearing extension
Permanent Delegate extension
When to use Token-2022 vs standard SPL

SPL vs Token-2022: what actually changes?

Standard SPL tokens are simple: fixed supply (after revocation), transferable, no special behaviors. Token-2022 is the upgraded program that adds optional extensions you can enable at creation time — extensions are permanent and cannot be added or removed later.

Feature	Standard SPL	Token-2022
Transfer fees	No	Yes (configurable)
Non-transferable tokens	No	Yes
Interest-bearing supply	No	Yes
Permanent delegate	No	Yes
DexScreener flags fees	N/A	Yes if fee > 3%
Trader familiarity	Very high	Medium
Recommended for memecoins	Yes	Usually not

Transfer Fee extension

Charges a percentage of every token transfer, collected into a separate account that the fee authority can withdraw. The fee is set in basis points (100 bps = 1%) with an optional maximum cap per transfer.

Config parameterDescription

Transfer fee bps100–500 = 1–5% (typical range)

Maximum feeCap per single transfer (in token units)

Fee authorityAddress that can change the fee rate

Withdraw authorityAddress that collects accumulated fees

⚠️

DexScreener flags transfer fees automatically. If your fee exceeds ~3–5%, the token page displays a warning badge. Many traders refuse to buy tokens with transfer fees above 5%. Keep fees low or don't use this extension for memecoins.

Good use cases: DeFi protocols that need sustainable revenue, utility tokens with staking rewards, tokens where the fee funds a specific treasury.

Non-Transferable extension (Soul-Bound)

Tokens with this extension cannot be transferred between wallets at all. They are permanently bound to the wallet that receives them — which is why they're called "soul-bound tokens."

💡

Use cases: Achievement badges, completion certificates, governance voting rights tied to identity, KYC credentials, loyalty tier tokens. Not suitable for anything meant to be traded.

Interest-Bearing extension

The token's displayed balance grows over time according to a configured interest rate, without any actual minting. The "interest" is purely a display calculation — the underlying token supply doesn't change, but wallets will show an increasing balance.

⚠️

This extension is commonly misunderstood. The rate authority can change the interest rate at any time. Without revoking the rate authority, it's a trust risk — the dev could set the rate to 0 at any moment.

Permanent Delegate extension

Assigns a permanent delegate address that has unlimited transfer and burn rights over every wallet holding the token — including wallets the delegate has never interacted with. This is the most powerful and dangerous extension.

🚨

High risk in the wrong hands. A permanent delegate could drain any holder's wallet of this token at any time. Rugcheck.xyz flags this extension prominently. Only use it if you have a legitimate technical reason (e.g., subscription enforcement, automated treasury management) and disclose it clearly.

Legitimate use cases: Subscription services (revoke tokens when subscription expires), corporate treasury automation, regulated asset compliance.

When to use Token-2022 vs standard SPL

Project Type	Recommended Standard	Reason
Memecoin / community token	Standard SPL	Maximum trader familiarity, no red flags
DeFi protocol token	Token-2022 (Transfer Fee)	Sustainable revenue model
Achievement / badge NFT	Token-2022 (Non-Transferable)	Soul-bound is the right primitive
Stablecoin / RWA	Token-2022 (multiple)	Compliance and fee collection
Gaming currency	Standard SPL	Simplicity and compatibility

✅

If you're launching a memecoin, use standard SPL. Token-2022 extensions add complexity that hurts you in the memecoin market — traders are suspicious of anything that isn't a plain SPL token with revoked authorities.

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