If you have been trading Solana tokens, you may have noticed some tokens use a different program than others. While most Solana tokens use the original SPL Token program, a growing number are built on Token-2022 (also called Token Extensions). Here is what you need to know.
The Original SPL Token Program
The original SPL Token program has been the standard for creating tokens on Solana since the blockchain launched. It provides basic functionality: creating tokens, transferring them between wallets, and managing supply through mint authority.
Every token you interact with on Pump.fun, Raydium, and most other Solana platforms uses this original program.
Enter Token-2022
Token-2022 is Solana new and improved token program that adds powerful features called extensions. Think of it as SPL Token 2.0 with additional capabilities built directly into the protocol.
Key Extensions
- Transfer fees: Token creators can set automatic fees on every transfer. This is commonly used for reflection tokens where a percentage of each transaction is redistributed to holders.
- Interest-bearing tokens: Tokens that automatically accrue interest over time without requiring staking.
- Non-transferable tokens: Soulbound tokens that cannot be transferred once received, useful for credentials and achievements.
- Confidential transfers: Encrypted transfer amounts for privacy while maintaining on-chain verification.
- Transfer hooks: Custom logic that executes on every transfer, enabling complex tokenomics.
- Metadata extensions: On-chain metadata without requiring separate Metaplex accounts.
What This Means for Traders
As a trader, Token-2022 tokens require some extra awareness:
Transfer Fees
Some Token-2022 tokens have built-in transfer fees. When you buy or sell these tokens, a percentage is automatically deducted. This is different from DEX trading fees and is enforced at the token level. Always check if a token has transfer fees before trading.
Compatibility
Not all wallets and DEXs fully support all Token-2022 extensions yet. While major platforms like Jupiter and Raydium support basic Token-2022 tokens, some advanced extensions may cause issues with certain tools.
Safety Considerations
Token-2022 extensions add complexity, which can both improve and complicate safety analysis. TokenRadar handles both SPL Token and Token-2022 tokens, checking mint authority and freeze authority across both program types.
How TokenRadar Handles Token-2022
TokenRadar automatically detects whether a new token uses the original SPL Token program or Token-2022. The safety analysis adapts accordingly, checking the correct program for authority status. This means you get accurate safety information regardless of which token standard is being used.
When you see a token on TokenRadar, the safety badges (mint authority, freeze authority) are always checked against the correct program, so you can trust the information displayed.
The Future of Solana Tokens
Token-2022 adoption is growing as developers discover the power of built-in extensions. Expect to see more tokens using transfer fees, hooks, and other extensions in the coming months.
Stay ahead of the curve by monitoring all new launches — both SPL Token and Token-2022 — on TokenRadar.