Introduction
Solana is a high-performance blockchain platform with low-cost transactions and a large ecosystem. Developers and project teams have been creating tokens here on Solana. Token functionality has been greatly improved with the release of Token2022 (Token Extensions). In this article, we will get you acquainted with Solana Token2022 and its features, and implement it to create a tax token with transaction fees of your choice.
What is Solana Token2022?
The Solana Token2022 is a new kind of token program in the Solana Program Library (SPL), which is formally referred to as Token Extensions Program (Program ID: TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb). Token Metadata Program — an extension of the existing Token Program (Program ID: TokenkegQfeZyiNwAJbNbGKPFXCWuBvf9Ss623VQ5DA), offering developers more functionality to create sophisticated tokens.
Notable Differences from the Previous Token Program
Compatibility and Extensibility: Token2022 is fully compatible with the existing Token Program but with a suite of extensions to allow developers to customize token properties.
Native Metadata Support: The original program requires an additional account to store metadata (name, symbol, icon, etc.). Token2022 embeds this information in the Mint account itself and is therefore easy to create.
Features: Transfer Fee, Private Transfer, Nontransferable token
Core Concepts
Mint Account: A token-specific account that contains global data (total supply, minting authority, etc).
Token Account: Shows how many tokens a person owns.
Modular Extensions:One of the most exciting aspects of Token-2022 is its modular extensions, enabling developers to choose which features to integrate on a per-token basis.
Why Use Solana Token2022?
As the Solana ecosystem matures, developers are looking for a greater degree of customization. The basic Token Program does not provide transaction fee support, and Token2022’s Transfer Fee Extension addresses this. This versatility is why Token2022 is the most popular token-creating tool for creating complex tokens like tax tokens.
What is a Solana Tax Token?
A Solana tax token is a unique token utilizing Token2022 that automatically levies a percentage of each transaction as tax. These fees could be portions used to develop projects, reward holders, or token burn to reduce supply.
How Tax Tokens Work
Transfer Fee: A fee is charged by taking a percentage (ex: 2% for each transaction). So if, for example, 1,000 tokens are being transferred, the other account will receive 980 tokens — 20 will be withheld as tax.
Tax Storage: In Ethereum tax fees are sent directly to one of several tax addresses, while in Solana tax fees are temporarily frozen in the sender’s account and must be withdrawn manually via Withdraw Withheld Authority.
Maximum Fee Cap — Developers can restrict the maximum tax paid per transaction to avoid solvency on large transfers.
Use Cases
Redirect tax revenue into a separate project treasury for development and solicitation of marketing services.
Burn Tax Fees: A market-reactive, incentive-based deflationary mechanism.
Rewards Distribution: Provide tax fees to specific holders to encourage prolonged holding.
Creating a Solana Tax Token Using Token2022
Here is a complete guide on how to create a Tax Token on Token2022 : Meet Slerftools, a no-code tool that lets us do this quickly.
Prerequisites
A Solana Wallet with a minimum of 0.15 SOL for transaction fees (either Phantom or Solflare)
Access to Slerftools: Visit the Slerftools website
Step 1: Connect Your Wallet
Open the Slerftools website.
In the upper right corner, click Connect Wallet, choose Phantom Wallet.
Make sure you are on Solana Mainnet in your wallet.
Step 2: Go to Tax Token Creation Page
Click “Solana Tax Token Creator” or “Token2022 Creator” on the homepage.
Step 3: Enter Token Details
Name: Example – MyTaxToken.
Symbol: Example – MTT.
Example For Total Supply: 1,000,000
Decimals: Recommended 6 or 9.
Transaction Fee (Transfer Fee) (As basis points; e.g. if you want it to be 2%, fill in 200 because 1% = 100 basis points)
Max Fee (Maximum Fee): Specify the cap for taxes per transaction (Example: 1,000 tokens)
Token Icon:Upload an icon( PNG recommended, 200×200 pixels);
Choose: Revoke Mint Authority And Freeze Authority.
Step 4: Confirm Creation
Click Create Token.
Phantom Wallet will ask for signature approval.
We are charged with 0.1-0.15 SOL as a fee to wait for confirmation of the transaction.
After your token is created, copy and save the Mint Address (contract address)
Withdraw Fees
Choose the token, and Slerftools will check all accounts for frozen tax fees.
Click the Withdraw, confirm the transaction, and the tax fees will go to the wallet you specified.
Benefits and Drawbacks of Tax Tokens
Advantages
Adaptability: Capability of adjusting tax rates and limits according to project requirements.
DeFi Growth: Solana has undergone tremendous growth since 2022 owing to Token-2022 being offered on many wallets and DEX (including Raydium.).
Economical: Fees for creation and transactions are much less than eth.
Considerations
Authority Management: Give explicit permission to tax withdrawal so that we never go to various departments for various purposes
Acceptance of the Token in the Community: Some token projects may have high tax rates.
When Token-2022 may not yet be supported in some older tools
Conclusion
The Solana Token2022 allows for exploring token creation and offers unlimited customization. As a functional feature, Tax Tokens add to tokenomics and new revenue for project teams. Slerftools enables anyone with minutes to spare to create and manage their Tax Token without having to become an expert programmer.
Follow the above steps, if you want to create Solana token with transaction fees. With Token2022 now here, we can only hope to see even more projects and creative bleeding-edge Token2022 based use-cases come to life within Solana!