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Technical10 min read

Token-2022 Extensions Explained: Transfer Fee, Interest Bearing and more

A complete overview of all Token-2022 extensions on Solana: how transfer fees work, what interest-bearing tokens are and when to use non-transferable tokens.

SPLCreator Team

What is Token-2022?

Token-2022 (also known as Token Extensions Program) is the next generation of the SPL Token standard on Solana. The biggest difference from the classic SPL Token standard: Token-2022 has built-in extensions that you normally would need a smart contract for.

## Available extensions

1. Transfer Fee
Automatically charge a percentage on every transfer. This percentage goes to a "withheld" account and can be claimed by the token creator. Useful for: revenue sharing, deflationary mechanisms.

### 2. Interest Bearing
The token supply grows automatically over time based on a set interest rate. The interest is calculated on-chain. Useful for: yield tokens, staking tokens.

### 3. Non-Transferable (Soulbound)
Tokens that cannot be transferred from one wallet to another. Once minted to a wallet, they stay there. Useful for: membership tokens, achievement badges, identity tokens.

### 4. Permanent Delegate
An address that always has full control over all token accounts. Useful for: programmable compliance, regulatory tokens.

## How to enable via SPLCreator

In step 4 ("Advanced options") of the wizard you can enable extensions. Note: extensions must be set at creation time and cannot be added later.