SPL Token Fundamentals
What are SPL Tokens?
SPL (Solana Program Library) tokens are the standard for fungible tokens on Solana, similar to ERC-20 tokens on Ethereum. They're built using Solana's Token Program and offer fast, cheap transactions with built-in features like freezing and burning.
Key Components
- Mint Account: The master account that defines your token's properties
- Token Accounts: Individual accounts that hold tokens for each wallet
- Associated Token Accounts (ATA): Standardized token accounts linked to wallet addresses
- Mint Authority: The account that can create new tokens
- Freeze Authority: The account that can freeze/unfreeze token accounts
Token Properties Explained
Decimals
Controls how divisible your token is. Common values:
- 0 decimals: Whole numbers only (NFTs, certificates)
- 6 decimals: Like USDC (1 million smallest units = 1 token)
- 9 decimals: Like SOL (1 billion smallest units = 1 token)
Supply
The initial amount of tokens to create:
- Fixed Supply: Set amount, revoke mint authority
- Inflationary: Keep mint authority to create more
- Deflationary: Burn tokens to reduce supply
Creating Liquidity & Trading
Liquidity Pools (LP)
To make your token tradeable, you need to create liquidity pools on decentralized exchanges (DEXs). This involves pairing your token with another token (usually SOL or USDC).
Popular Solana DEXs:
- Raydium
- Orca
- Jupiter
- Serum
LP Benefits:
- Earn trading fees
- Provide token liquidity
- Bootstrap price discovery
- Attract traders
Advanced Token Features
Token Extensions
- Transfer Fees: Charge fees on every transfer
- Mint Close Authority: Ability to close the mint account
- Permanent Delegate: Account with special privileges
- Transfer Hooks: Custom logic on transfers
Metadata
- Token Logo: Image displayed in wallets
- Description: What your token represents
- Website: Official project website
- Social Links: Twitter, Discord, etc.
Security & Best Practices
Security Tips
- Always backup your wallet seed phrase securely
- Test with small amounts first
- Verify all transaction details before signing
- Use hardware wallets for large amounts
- Never share your private keys
Launch Strategy
- Start with a clear token utility
- Build community before launch
- Create liquidity gradually
- Be transparent about tokenomics
- Engage with your community regularly