What is Token-2022?
Token-2022 is an upgraded version of the SPL Token Program that maintains backward compatibility while adding new features through extensions. It was introduced to provide more flexibility and advanced functionality for token creators who need features beyond the standard SPL token capabilities.
Key Point: Token-2022 is fully compatible with standard SPL tokens. Tokens created with Token-2022 can interact with standard SPL tokens, but they offer additional features through extensions.
Token-2022 vs Standard SPL Tokens
| Feature | Standard SPL Token | Token-2022 |
|---|---|---|
| Basic Functionality | ✅ Full support | ✅ Full support |
| Extensions | ❌ Not available | ✅ Available |
| Transfer Fees | ❌ Not supported | ✅ Supported via extension |
| Interest-Bearing | ❌ Not supported | ✅ Supported via extension |
| Compatibility | ✅ Universal | ✅ Compatible with SPL |
Token-2022 Extensions
Token-2022 introduces extensions that add new capabilities to tokens. Here are key extensions:
Transfer Fee Extension
Allows tokens to charge a fee on transfers. This can be used for revenue generation, deflationary mechanisms, or protocol fees. The fee is automatically deducted during transfers.
Interest-Bearing Extension
Enables tokens to accrue interest over time. Useful for staking tokens, yield-bearing tokens, or tokens that represent time-based value.
Transfer Hook Extension
Allows custom logic to execute during token transfers. This enables advanced features like transfer restrictions, validation, or additional processing.
Metadata Pointer Extension
Provides a more efficient way to store and manage token metadata, improving on-chain metadata management compared to standard SPL tokens.
The Complete Extension Reference
Every mint-level extension in one place, in plain English. The buyer impact column shows how DEX screeners and cautious buyers read each extension when they inspect your token, worth knowing before you enable one. Use the filters to narrow by what you are trying to do.
Transfer Fee
Buyer impact: cautionSkims a configurable percentage (in basis points, with an optional cap) from every transfer. The fee accrues to the token and is withdrawn by a fee authority. Used for protocol revenue and tax-style tokenomics. Buyers and screeners always surface the fee percentage, and aggregators account for it when routing swaps.
Interest-Bearing
Buyer impact: neutralDisplays balances as if they accrue interest at a configured rate. Purely cosmetic on-chain: no new tokens are minted, the UI amount is scaled by the rate. Used for bond-like or yield-branded instruments. No direct risk to holders.
Permanent Delegate
Buyer impact: red flagGrants one fixed address the permanent right to transfer or burn tokens from ANY holder's account. Designed for regulated assets that legally require clawback. On a public token this is the single most serious extension a buyer can find, and rug checkers flag it hard.
Transfer Hook
Buyer impact: cautionCalls a custom program on every transfer, which can validate, log, restrict, or reject the transfer. Powerful for allowlists and game logic, but holders must trust the hook program, and most DEXs will not pool hooked tokens unless the hook is specifically allowlisted.
Non-Transferable
Buyer impact: cautionTokens are soulbound: once received they cannot be moved or sold, only burned by the holder. Legitimate for credentials, achievements, and identity, and meaningless for anything meant to trade. A tradeable token should never carry this.
Default Account State
Buyer impact: cautionSets the state every new token account starts in. If set to frozen, each new holder is locked until the freeze authority thaws them, an allowlist in practice. Fine for KYC-gated assets, hostile on an open token.
Mint Close Authority
Buyer impact: cautionLets a named authority close the mint account and reclaim its rent once supply is zero. Harmless in itself, but its presence means the project kept post-launch control levers.
Confidential Transfers
Buyer impact: neutralEncrypts transfer amounts using zero-knowledge proofs (balances and parties stay visible). Compliance-friendly privacy. Ecosystem support is still very limited, so treat it as experimental for anything public-facing.
Metadata Pointer & On-Mint Metadata
Buyer impact: positiveThe metadata pointer records where a token's metadata lives; combined with the token metadata extension, the name, symbol, and URI are stored directly on the mint with no separate Metaplex account. Cleaner and cheaper than the classic setup.
Group & Group Member Pointers
Buyer impact: neutralLet mints declare collection-style relationships on-chain: one mint acts as the group, others as members. Useful for editions, series, and structured products.
Immutable Owner, Required Memo, CPI Guard
Buyer impact: neutralThese live on token accounts rather than the mint. Immutable owner stops account ownership changes (default on associated token accounts). Required memo forces incoming transfers to carry a memo, common for exchange deposits. CPI guard blocks certain actions when called by other programs, protecting users from malicious dApps. Holders opt in; token creators do not set these.
Wallet & DEX Compatibility Matrix
The question that actually decides whether you should use Token-2022: will your token work where your holders are? This matrix summarises real-world support for the extensions people most often ask about.
| Platform | Basic Token-2022 | Transfer fee | Transfer hook | Confidential |
|---|---|---|---|---|
| Phantom | Supported | Supportedshows the fee | Partialdepends on the hook | No |
| Solflare | Supported | Supported | Partialdepends on the hook | No |
| Backpack | Supported | Supported | Partialdepends on the hook | No |
| Jupiter (aggregator) | Supported | Supportedquotes include the fee | Limitedallowlisted hooks only | No |
| Raydium | SupportedCPMM pools | SupportedCPMM pools | No | No |
| Orca | SupportedWhirlpools | Supported | Nounless allowlisted | No |
Non-transferable tokens cannot trade anywhere by definition, so they are omitted from the matrix.
Verified July 2026. Token-2022 support changes quickly as wallets and DEXs ship updates. Before a real launch, test your exact extension combination end to end with a small amount: mint, send to a fresh wallet, and swap on your target DEX.
When to Use Token-2022
Use Token-2022 When:
- You need transfer fees for revenue or deflationary mechanisms
- You want interest-bearing tokens (staking, yield)
- You need custom transfer logic or restrictions
- You require advanced metadata management
- You're building a protocol that needs extended token functionality
Use Standard SPL When:
- You need a simple utility token or memecoin
- Maximum compatibility is your priority
- You don't need advanced features
- You want the simplest token creation process
Creating Token-2022 Tokens
Creating Token-2022 tokens requires using tools that support the Token-2022 program. Not all Solana token creators support Token-2022 yet, so check compatibility before creating. The process is similar to standard SPL token creation, but you'll configure extensions during setup.
Important: Token-2022 is newer than standard SPL tokens. Ensure your wallet, exchange, and other tools support Token-2022 before using it. Standard SPL tokens have broader compatibility.
Compatibility Considerations
While Token-2022 tokens are compatible with standard SPL tokens for basic operations, some wallets and tools may not fully support all extensions. Consider:
- Wallet Support: Check if your target wallets support Token-2022 and specific extensions
- Exchange Support: Verify exchanges support Token-2022 tokens before listing
- dApp Compatibility: Ensure decentralised applications you plan to use support Token-2022
- User Experience: Consider whether users will understand and be able to use Token-2022 features