In certain tokens on others blockchains, people who are selling/buying/transferring the tokens will be hit by a 10% or more penalty tax fee on the transactions set by token creator. Some of the collected tax fees are distributed to:

  1. Holders

  2. Reward pool: Some of the tokens received as tax fee and another coin (BNB, BUSD, ETH, etc) are taken. And these coins are distributed proportionally to the holders.

  3. Token Burn: Some of the tokens cut as a tax fee are burned.

  4. Add liquidity pool: Tokens deducted as tax fee are added to the liquidity pool.

  5. Marketing and dev wallet

Can a developer of tokens set a fee to do that with SPL token on Solana blockchain?

1 Answer 1


In token-2022, there's the ability to collect a transfer fee on every token movement. You can set a transfer fee on your token, and then use another program to collect fees and distribute / burn them as you see fit.

You can find more information about transfer fees at https://spl.solana.com/token-2022/extensions#transfer-fees

With the older token program, you can only do this by "managing" the token through a program that keeps the tokens frozen. This program unfreezes, performs actions, and then refreezes the token. You can find an example program at https://github.com/solana-labs/solana-program-library/tree/master/managed-token

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.