Solana Token Use Cases: Complete Guide

Utility Tokens

Utility tokens provide access to services, features, or products within an ecosystem. They're the most common token type and serve as the native currency for platforms, applications, or services built on Solana.

Utility Token Design Considerations

Utility tokens should have sufficient supply to support platform usage, reasonable tokenomics that encourage holding and spending, and clear utility that creates demand. Consider how your token will be used and design supply and distribution accordingly. See our tokenomics guide for design principles.

Governance Tokens

Governance tokens enable holders to participate in decision-making for protocols, DAOs, or projects. They represent voting power and allow communities to govern themselves decentralised.

Governance Token Best Practices

Governance tokens should have fair distribution to prevent centralisation, clear voting mechanisms, and transparent governance processes. Consider vesting schedules for team tokens and mechanisms to prevent whale dominance. Supply should balance between scarcity (to create value) and distribution (to enable participation).

Stablecoins

Stablecoins maintain stable value relative to fiat currencies (typically USD). They provide price stability for trading, payments, and value storage while maintaining blockchain benefits like fast transfers and low fees.

Stablecoin Types

• Fiat-Collateralised: Backed by reserves of fiat currency
• Crypto-Collateralised: Backed by cryptocurrency reserves
• Algorithmic: Maintain stability through algorithmic mechanisms

Creating stablecoins requires significant infrastructure, regulatory compliance, and ongoing management. Most token creators focus on other token types unless they have specific stablecoin expertise and resources.

Memecoins

Memecoins are community-driven tokens that succeed through viral marketing, strong branding, and community engagement rather than technical utility. They've become a significant part of the Solana ecosystem, with some achieving remarkable success.

Learn more about memecoin creation and memecoin strategies for successful launches.

Security Tokens

Security tokens represent ownership, investment, or financial instruments. They're subject to securities regulations and require compliance with applicable laws. Security tokens often use freeze authority for regulatory compliance.

Security Token Considerations

• Regulatory compliance requirements
• Freeze authority for compliance enforcement
• KYC/AML integration needs
• Legal structure and documentation
• Professional legal and regulatory advice required

Reward and Incentive Tokens

Reward tokens incentivise specific behaviours or participation. They're distributed to users for actions like providing liquidity, staking, referring users, or completing tasks. These tokens often have ongoing distribution, requiring retained mint authority.

NFT and Collectible Tokens

While NFTs are separate from SPL tokens, some projects create tokenised collections or use tokens to represent collectible sets. These tokens often use 0 decimals since they represent whole, indivisible items.

Choosing the Right Use Case

Selecting the appropriate token use case depends on your project goals, target audience, and resources. Consider what problem your token solves, who will use it, and how it creates value.

Hybrid Use Cases

Many successful tokens combine multiple use cases. A token might provide utility access while also enabling governance, or serve as both a payment method and reward mechanism. Consider how different use cases can complement each other in your design.

Tokenomics by Use Case

Different use cases require different tokenomics. Utility tokens need sufficient supply for usage, governance tokens need fair distribution, and memecoins often use large supplies with fixed caps. Design your tokenomics to support your chosen use case effectively. See our tokenomics guide for detailed design principles.