Understanding SPL Tokens on Solana

SPL tokens are the standard for fungible (and non-fungible) tokens on Solana, similar to ERC-20 on Ethereum — but with a key difference: instead of each token being its own contract, all SPL tokens are managed by a single shared Token Program.

Mint Account vs Token Account

A mint account defines the token itself: its supply, decimals and authorities. A token account (often an Associated Token Account) holds a specific wallet's balance of that token.

Decimals

Decimals set how divisible the token is. With 9 decimals, one token is stored on-chain as 1,000,000,000 base units. Stablecoins commonly use 6 decimals.

Authorities

• Mint authority — can create new tokens. Revoke for a fixed supply.
• Freeze authority — can freeze balances. Revoke for full decentralization.

Metadata

Raw SPL tokens have no name or logo. The Metaplex Token Metadata program attaches a name, symbol and a link to a JSON file (with the image) so wallets and explorers can display your token properly.

Why the Shared Program Matters

Because the Token Program is audited and used by everything, creating a token is cheaper, faster and safer than deploying custom code.

FAQ

Are NFTs also SPL tokens?

Yes — an NFT is essentially an SPL token with a supply of 1 and zero decimals, plus rich metadata.