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Solana Explained

What is an SPL Token? Solana's Token Standard Explained

SPL tokens are Solana's native fungible token standard - the equivalent of Ethereum's ERC-20. Every token built on Solana, from USDC to memecoins, is an SPL token. Here is everything you need to know.

What Does SPL Stand For?

SPL stands for Solana Program Library - the collection of on-chain programs (smart contracts) that power the Solana blockchain's core functions. The SPL Token Program is the specific program responsible for creating, minting, and transferring tokens on Solana.

When someone says "SPL token," they mean any fungible token created using the Solana Token Program. This is Solana's equivalent of ERC-20 on Ethereum - a standard interface that makes every SPL token automatically compatible with all Solana wallets, DEXs, and DeFi protocols.


How SPL Tokens Work

SPL tokens are managed by the Token Program, a single on-chain program that all Solana tokens share. Unlike Ethereum, where each ERC-20 token is its own deployed smart contract, Solana tokens are data accounts controlled by the shared Token Program.

Mint Accounts

Each SPL token has a mint account - a unique address on Solana that represents the token itself. The mint account stores the token's metadata URI, current supply, number of decimals, and which wallets hold authorities over the token.

Token Accounts

When a wallet holds an SPL token, Solana creates a token account for that wallet-token pair. This is different from Ethereum where token balances are stored inside the token contract itself. Token accounts cost a small SOL rent deposit (currently around 0.002 SOL) to create. This is why sending an SPL token to a wallet that has never held it before requires slightly more SOL than a standard transfer.

Metadata

SPL token metadata - name, symbol, logo, description, and social links - is stored in a separate metadata account using the Metaplex metadata standard. This is the metadata URI that wallets and DEXs read to display your token's name and logo correctly.


SPL Token vs ERC-20: Key Differences

Property SPL Token (Solana) ERC-20 (Ethereum)
Token program Shared Token Program Individual contracts
Transfer fee $0.0001-0.001 $0.50-$10+
Confirmation time ~400 milliseconds ~12-60 seconds
Metadata storage Metaplex on-chain Off-chain URI (IPFS/server)
Primary DEX Raydium, Jupiter Uniswap, Curve
Cross-chain bridging Wormhole bridge Many EVM bridges
DeFi ecosystem size Large and growing Largest in crypto

Token Authorities on Solana

When you create an SPL token, your wallet is assigned three authorities. These can be held, transferred, or revoked:

Mint Authority

The mint authority controls who can create new tokens. As long as a mint authority exists, whoever holds it can increase the total supply at any time. Revoking mint authority permanently caps the supply - a critical trust signal for any token. Most memecoins and community tokens are expected to have this revoked.

Freeze Authority

The freeze authority can freeze individual token holder accounts, preventing those holders from transferring their tokens. This is a concerning power from a holder's perspective. Revoking freeze authority means no one can ever freeze a holder's account.

Update Authority

The update authority controls who can change the token's on-chain metadata - its name, symbol, logo, and description. Revoking it locks the metadata permanently. This is recommended once you are happy with your token's branding.

Authority revocations are expected by the market. Serious Solana traders check Solscan for authority status before buying a new token. Tokens with all three authorities revoked are generally considered safer and attract more confident buyers.

What is Token-2022?

Token-2022 (also called Token Extensions) is an upgraded version of the Solana Token Program. It adds advanced features including:

  • Transfer fees - the token creator can collect a percentage on every transfer
  • Non-transferable tokens - tokens that cannot be moved once received
  • Confidential transfers - private balance amounts using zero-knowledge proofs
  • Permanent delegates - allowing a third party to always transfer tokens on behalf of holders

Standard SPL tokens created on Launchify use the original Token Program, which is the correct choice for fungible tokens, memecoins, and community tokens. Token-2022 extensions are designed for specific DeFi use cases.


Where Can SPL Tokens Be Traded?

SPL tokens can be traded on any Solana DEX immediately after creation, provided liquidity has been added. The main trading venues are:

  • Raydium is the largest Solana DEX by volume. Create an AMM pool with your token and SOL (or USDC) to make it tradeable.
  • Jupiter aggregates liquidity across all Solana DEXs. Tokens listed on Raydium appear on Jupiter automatically.
  • Orca is Solana's Concentrated Liquidity DEX, popular for tokens with an established user base.
  • Pump.fun focuses on new memecoin launches using a bonding curve mechanism.

How to Create an SPL Token

The fastest way to create an SPL token without code:

  1. 1
    Install Phantom wallet and fund with SOL You need a small amount of SOL for the platform fee and network costs.
  2. 2
    Go to the Solana token creator Visit uselaunchify.com/create-token/solana/ and fill in your token details.
  3. 3
    Approve one wallet transaction Connect Phantom, approve the SOL payment. Your token is deployed to mainnet in under 30 seconds.

For a full walkthrough, see the complete guide to creating a Solana token.


Frequently Asked Questions

SPL stands for Solana Program Library. An SPL token is the standard fungible token on the Solana blockchain - equivalent to ERC-20 on Ethereum. All Solana tokens (USDC on Solana, memecoins, community tokens) are SPL tokens.
Unlike Ethereum where each ERC-20 token deploys its own smart contract, SPL tokens use a single shared Token Program. Your token is a data account, not a separate contract. This is why SPL token creation is faster and cheaper than ERC-20 deployment.
Go to solscan.io and search for the token's mint address. The token detail page shows current mint authority, freeze authority, and update authority status. Revoked authorities display as "Disabled".
The mint address is the unique identifier for your token on Solana - a base58-encoded public key that looks like a random string of letters and numbers. It is the on-chain address of your token's mint account. Share this with holders so they can add your token to their wallets.
If the update authority has not been revoked, you can update the token's metadata including name, symbol, logo, and description. Once update authority is revoked, the metadata is permanently locked and cannot be changed by anyone.

Create Your SPL Token on Solana

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