An SPL token (Solana Program Library token) is the standard for fungible tokens on the Solana blockchain — equivalent to ERC-20 tokens on Ethereum. SPL tokens power everything from memecoins to DeFi protocols and stablecoins on Solana.
How SPL Tokens Work
Every SPL token on Solana consists of three key components:
- Mint Account — The token's "factory". Stores supply, decimals, and authority settings. Created once when the token is launched.
- Token Account — Every wallet that holds the token needs its own Associated Token Account (ATA). Costs a small rent fee (~0.002 SOL) to create.
- Metadata Account — Stores the token name, symbol, logo URI and other data via the Metaplex Token Metadata standard.
SPL Token vs ERC-20: Key Differences
Speed & Cost
Solana processes transactions in ~400ms with fees under $0.001. Ethereum transactions take 12+ seconds and can cost $5–$50 in gas fees.
Token Architecture
On Ethereum, each ERC-20 token is its own smart contract. On Solana, all SPL tokens use the same Token Program — making them more efficient and cheaper to create.
Decimals
SPL tokens default to 9 decimal places (same as SOL). ERC-20 tokens typically use 18 decimals. Both allow for extremely small fractional amounts.
Types of SPL Tokens
- Utility Tokens — Used within a specific platform or protocol
- Governance Tokens — Allow holders to vote on protocol decisions (DAOs)
- Memecoins — Community-driven tokens with cultural value
- Stablecoins — USDC and USDT are SPL tokens on Solana
- Wrapped Tokens — Representations of assets from other chains
SPL Token Authorities
SPL tokens have two key authority settings that control their behavior:
- Mint Authority — Controls who can create new tokens. Revoke to create a fixed supply.
- Freeze Authority — Controls who can freeze token accounts. Revoke for a fully permissionless token.