What is Token Extensions?

what is Token Extensions

SPL Token-2022 or Token Extensions is the latest token program on the Solana blockchain deployed in 2020 and can be used to create fungible and non-fungible tokens. Token 2022 was changed to Token Extensions this year January 2024. The current upgrade supports non-fungible tokens (NFT) with the same functionalities and structures of the SPL Token program but also includes a set of extensions to add new functionalities. This new standard is designed to address the growing demand for enhanced token functionality without disrupting the existing ecosystem. Before now, enhanced token functionalities can only be seen in Ethereum and BNB Chain. But thanks to Token extensions these functionalities are now possible on Solana. Since deployment developers and ambitious founders have been building and trying to harness the capabilities of Token 2022 or Token Extensions as the case may be.

Key Features of Token Extensions

Similar to EVM chains, extensions let developers provide tokens with additional features without changing their current structures. Because of this, new functionality may be added without interfering with already-running apps.

Mint extensions

  1. Confidential transfers

    The Confidential transfer feature aims to protect users’ transactions. It harnesses the power of Zero-Knowledge proof to encrypt token balances and transfer amounts for SPL. Through the use of "Twisted ElGamal Encryption," secret mathematical operations can be carried out on ciphertext during confidential transmissions.

  2. Transfer fees

    Setting transfer fees for fungible tokens is one of the biggest innovations in defi in EVMs. The Solana program's current token program does not include fees for transfers; however, the Token Extensions standard makes it feasible to configure these features.

  3. Closing mint

    An address without authorization can now cancel mint accounts thanks to a unique feature in Token Extensions, which was not available in the previous token program.

  4. Interest-bearing tokens

    Developers can alter how token amounts are shown in the user interface using interest-bearing tokens. With the use of this feature, developers can create tokens that incentivize holders to continue to hold them.

  5. Non-transferable tokens

    A recent breakthrough in the crypto space is the non-transferable token, which allows developers to develop "soul-bound" tokens that are locked in and cannot be moved from their original wallet to another. This is ideal for rewards within apps, etc.

  6. Permanent delegate

    Developers can designate a permanent account delegate for any token account owned by a mint by using the permanent delegate feature.

  7. Transfer hook

    Token creators now can interact with third-party apps and tools for a variety of functions during token transfers, particularly with NFTs, thanks to the Transfer Hook extension.

  8. Metadata pointer

    As stated before, one of the amazing potentials of token extensions is that it enables non-fungible features. One of the functions that permits adding an address describing the canonical metadata is the metadata pointer.

  9. Metadata

    The metadata feature enables creators to directly add info to mint accounts since it permits non-fungible functions.

Token account extensions

These types of extensions can be enabled on token accounts of SPL Token-2022.

  1. Memo required on incoming transfers

    Token extensions allow creators to attach on-chain messages i.e. memos with incoming transfers which are valid on fungible tokens.

  2. Immutable ownership

    This type of extension forbids transferring ownership of an account to someone else on fungible and non-fungible tokens. This guards against unauthorized access and hacking of the account. The account that created the token will always be in control of the account thanks to the Immutable Owner extension.

  3. Default account state

    The developers of the mint can restrict how holders can utilize the token by using the DefaultAccountState extension. As a result, token creators have control over token holders. The $CHAD project is a perfect example of how to utilize this method to combat snipers who attempt to undermine our efforts.

  4. CPI guard

    Token Extensions have brought a lot of innovation to this space that hasn't been seen in the Solana token program. The CPI delegate has made it possible for token creators to specify a permanent account delegate for a token. This function allows assigned account transfer or burn tokens out of wallets.

Who has implemented Token Extensions?

Since Token Extensions is new, to achieve mass adoption developers, DApps, protocols, etc need to integrate it into products as it continues undergoing audits. Below are projects/products that have adopted Token Extensions:


The concept of Chad was born thanks to all the bad things going on in Web3. We are tired of seeing the same group of people profiting from the newbies in the space. We are building an organic community surrounded by memes, good vibes, and most importantly. Making it fair for everyone. Our team has a lot of experience in crypto and NFTs. From traders to developers or people with big connections in the space. We got tired of chasing other people's projects so decided to make a REAL meme token.

  • A 3% transaction fee is collected for every trade by CHADGPT
  • 50% of the $CHAD tax collected is burnt while the other 50% is distributed to holders in $SOL when 6.9SOL trades are met.


The $BONK community created $BERN, a popular dog memecoin on Solana. $BERN is taking advantage of the Token extensions superpower by using the Transfer Fee function to take a 6.9% fee on all token transactions.

  • 5% collected as transaction fees collected to reward $BERN holders.
  • 1% used to buy and burn $BONK
  • 0.5% to burn $BERN
  • 0.3% for developer funds and tokens liquidity pool.
  • 0.1% to $BONK DAO


FluxBot is a sniper bot from FluxBeam, a DEX on Solana supporting Token Extensions programs. FluxBot offers simple access to cryptocurrency trading and services via the user-friendly Telegram interface.

  • A 3% tax on the $FLUXB token is reflected as follows:
  • 50% to holders
  • 25% to the liquidity pool
  • 25% to team & operating expenses.


Wallets currently supporting the Token Extensions program are Phantom and Backpack. In due we will see other wallets supporting the Token Extensions program.

Decentralized Exchanges

Tokens created via the Token Extensions program are presently supported exclusively by FluxBeam the sole DEX on Solana.


Metaplex is one of the leading developer resources for Token Extensions programs for fungible and non-fungible tokens.

MadShield is a smart contract auditing platform on the Solana ecosystem that now runs audits for Token Extensions programs.

RugCheck is another tool that adopted running scans on the Token Extensions program. It helps degens look into the structure of tokens before interacting with any.


The token Extensions program is still new and innovations and audits still going on. This innovation in the Solana ecosystem is going to change the way we create or interact with tokens. More adoptions will lead to Centralized exchange listings and more. We can’t wait for the future.

For full documentation of Token Extention, visit here.