At first glance, both SPL Token (Solana Program Library Token) and the Token 2022 (also known as Tax Token or Token Extensions) look very similar, and even the creation process is similar. However, the Token 2022 includes certain features that a standard token does not have.

The name Token 2022 was adopted by the community, since it actually refers to SPL tokens built under the 2022 protocol update to the Solana library.

These new protocols introduce many additional use cases, mainly through the added extensions (we will get into that later), but they are not as widely used as regular SPL tokens.

What is a Token SPL?

Known as the standard Solana Token, the SPL Token follows the operational standards of the Solana Program Library, which defines how tokens interact with the smart contract on Solana.

El SPL token es la opción más común para los proyectos en Solana

Its compatibility with the Solana ecosystem is nearly universal, and it can be indexed across all exchanges, making it the most common choice for projects building on the blockchain.

What is a token SPL 2022?

A Token 2022, on the other hand, follows the standards from the latest update to the token creation program introduced by Solana in its library in 2022.

That means it includes every feature of a SPL token, while also unlocking new features known as “extensions.”

And this new standard makes a lot of sense.

It came about because Solana developers believed that, while SPL had been extremely versatile and had worked well up to that point, the previous token was limited in what it could do.

That is where the idea behind the 2022 library comes in: creating an operational standard that can support new features as they are needed.

Differences Between Token SPL and Token 2022

I want to break down the key differences between both types of tokens, without focusing only on the extensions. We cover those one by one in this post.

Below, I’ll walk you through a series of technical and practical differences between both token types.

1. Extensions

This is obviously the first and most important point. token 2022 tokens are often called “Tax Tokens,” even though transaction fees are only one feature of this protocol.

They are called extensions, not “updates,” because the base itself stays exactly the same. It is the standard SPL Token with a set of core features added on top.

Extensions let you add transfer fees, interest-bearing rates, optional transfer capabilities, and several other functions.

La función más destacada es la capacidad de añadir un fee por transferencia

The standout feature, and the reason many token project creators choose it, is the ability to add a transfer fee. That means every transaction carries two costs for the trader: the Solana blockchain fee and the fee set by the token creator.

Extensions are split into 2 types: those at the “Token mint” level and those applied per account. Extensions at the “Token mint” level apply to every token holder, while the second type is configured per account and must be accepted by the account owner.

2. Indexability

Indexability is the main issue with Token 2022. Since it is still not indexed on many exchanges and can run into problems on platforms like SolScan, developers have not adopted this protocol widely.

In this video, Jorge creates a tax token and reviews the results. The token was created successfully with the Smithii tool, but the outcome was that some indexing issues appeared on platforms like SolScan.

It is also known that there are issues when creating liquidity pool for Token 2022 on Raydium or Orca. These issues are expected to be resolved over time.

3. Rewards and airdrops

Tax tokens usually need a fairly solid rewards and airdrops system to justify the fees they charge.

For example, the 2022 token created by the $BONK developers, called $BERN, applies a 6.9% fee on transfers. According to the team, that fee is used to reward holders of both $BONK and $BERN.

4. How it compares to Ethereum

The comparison between both blockchains has been around since Solana was created. The main disadvantage Solana has faced against Eth comes from the limitations of its earlier protocol.

The 2022 protocol lets Solana developers get much closer to the flexibility Eth currently offers, thanks to extensions.

5. Wallets that support Token 2022

Far fewer wallets support token 2022 compared with SPL.

One early adopter of Token 2022 was the wallet known as Backpack, which works as an extension.

One of the best-known options is Phantom Wallet. Phantom has partial support for 2022 tokens. Some tokens, such as BonkEarn and SolarMoonSol, can be viewed and sent from the wallet. Others, like $BERN, still appear as “Unknown Tokens”. Support is expected soon.

Solflare, the other well-known extension, has supported Token 2022 for a while now.

Key Takeaways

Tokens built on the new Solana protocol, known as Tokens 2022, give developers a powerful mix of features, opening the door to Solana tokens for use cases we had not seen before.

Right now, the main challenge for Tokens 2022 is indexability. The friction they create across the Solana ecosystem feeds a loop where developers keep choosing standard SPL tokens instead.

There is still a lot to prove, but more interesting projects keep adding support for Token 2022. That points to a strong future for the protocol, because it clearly still has a lot more to offer.

Remember, with Smithii tools you can manage every stage of your SPL Token, including your Token 2022. You will not need any coding knowledge either.

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