What Is an SPL Token?

An SPL token is any fungible or non-fungible token created using Solana‘s native token standard. SPL stands for Solana Program Library. Every token on Solana, from stablecoins to meme coins to governance tokens, is an SPL token if it follows the standard interface defined by the Solana Program Library.

How SPL Tokens Work

SPL tokens are managed by the Solana Token Program, a deployed on-chain program that handles minting, transfers, and burning. Each token has a mint account that stores the supply and mint authority, and each holder has a token account that holds their balance. Unlike ERC-20 tokens on Ethereum, where balances are tracked in the token contract itself, SPL token balances live in separate per-wallet token accounts linked to the mint.

Creating an SPL Token

Creating an SPL token requires deploying a mint account with the desired decimals and supply, then minting tokens to a recipient address. This can be done programmatically through the Solana CLI or through tools like Smithii’s token creator, which handles the technical steps through a simple interface without requiring command-line knowledge. Setting the mint authority to a burn wallet or revoking it entirely removes the ability to mint additional supply, which is often done to signal a fixed total supply.

SPL Tokens vs. ERC-20 Tokens

The SPL standard and Ethereum’s ERC-20 standard are conceptually similar but differ in implementation. SPL tokens use Solana’s account model, where token balances are stored in separate accounts rather than inside a single contract. This design allows Solana to process token transactions in parallel, contributing to its high throughput. ERC-20 tokens use Ethereum’s contract model, where balances are stored directly inside the token contract’s storage.

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