As a high-performance, low-cost blockchain platform, Solana has stood out in the Web3 world in recent years due to its fast transaction processing capabilities, active developer ecosystem, and increasingly complete toolchain. Creating tokens on Solana is not only simple but also extremely cost-effective, making it the first choice for developers, startups, game protocols, and even DAO organizations.


However, as application scenarios become more complex, traditional token standards (SPL Token) can no longer meet the growing demand for customization—such as transaction tax, transfer control, embedded metadata, or more granular permission management. This is the context in which Token-2022 (officially named Token Extensions Program) was born.

I. What is Token-2022?

Token-2022, fully known as Token Extensions Program, is the next-generation token program of the Solana SPL library.

It is an upgraded version of the old spl-token, with the core advantage being the 'modular extension (Extensions)' mechanism.

Token-2022 is a structural upgrade of the Solana token system, providing more flexible modular extension capabilities, allowing developers to enable innovative features such as transaction tax, transfer notes, privacy functions, non-transferability, etc., as needed.

Among them, one of the most discussed applications in the community is the Tax Token—a token model that automatically deducts fees from each transfer and can be controlled by the project party for withdrawal. It is widely used in GameFi, community dividends, marketing pools, DAO treasuries, and other scenarios, becoming the infrastructure for building a 'sustainable economic model'.

🔍 Core Features:

✅ Transaction Tax: Supports automatic tax deduction mechanism, with the ability to set limits and withdrawal authority.

✅ Non-transferable: Suitable for identity authentication, certificate-like tokens.

✅ Confidential Transfers: Supports zero-knowledge proof mechanism (experimental)

✅ Embedded Metadata: Token name / symbol / icon can be directly embedded into the Mint account, without needing an additional account.

✅ Transfer Hooks: Custom logic (such as whitelisting, KYC, charging) can be embedded in the transfer process.

✅ Memo Support: Transfers can include notes for on-chain traceability.

Compared to the old version of SPL Token, Token-2022 'tokenizes' logic, providing stronger functionality without relying on smart contracts, making it safer and more efficient.

II. vs Traditional SPL Token

✅ 100% compatible with old token features: Token-2022 has been supported by most wallets and DEXs, such as Phantom, Solflare, Raydium, etc.

III. The Most Representative Extension: Tax Token

Tax Token is a special token created based on Token-2022, with the main feature being that a certain percentage of 'tax' is automatically collected from each transfer.

💡 How It Works

  • Set transfer tax rate (e.g., 2%, which is 200 basis points)

  • For example, transferring 1000 tokens, the recipient receives 980 tokens, and 20 tokens are temporarily stored as tax.

  • The tax will be frozen at the sender's address and manually withdrawn by a wallet with 'Withdraw Authority'.

  • Supports setting 'maximum tax per transaction' to avoid excessively high fees for large transactions.

📦 Application Scenarios

  • Financing pool accumulation (capital pool, development costs)

  • Deflationary destruction (reducing supply)

  • Long-term holding rewards (automatic dividends)

IV. How to Use CiaoTool to Create Token-2022 Tax Token?

The platform tool supports no-code tools for Token-2022, enabling the quick creation of Solana tokens with a complete economic model.

🔧 Prerequisites

  • Install a Solana wallet (recommended Phantom, Solflare)

  • Prepare at least 0.15 SOL in the wallet to pay for transaction fees.

🚀 Step One: Create Token

1. Open CiaoTool, connect wallet



2. Select 'Token Management' to enter the Token-2022 section.

3. Fill in the following information:

  • Token Name / Symbol (e.g., MyTaxToken / MTT)

  • Total supply and decimal places (recommended 6 or 9 decimal places)

  • Transaction tax rate (input 200 represents 2%)

  • Maximum tax (e.g., 1000, to prevent excessive tax on a single transfer)

  • Upload icon (recommended PNG, 200x200)

  • Permission settings (whether to give up Mint authority / Freeze authority)

🧾 Step Two: View and Verify

  • Enter the token Mint Address in Solana Explorer to view information.

  • Manually add the token in Phantom to display the balance.

💰 Step Three: Withdraw Tax

  • Return to CiaoTool → 'Token Management' → 'Tax Withdrawal'

  • The system will list all the amounts available for tax withdrawal.

  • After signing with the withdrawal authority wallet, the tax will be transferred to the designated account.

V. Applicable Scenarios?

VI. Conclusion: Token design is not about being more complex but about having 'just the right functions'.

Token-2022 brings true flexibility to Solana projects, no longer limited to standardized token models. You can build your ideal economic system like building blocks.

And through CiaoTool, even if you don't know how to program, you can easily create your own 'smart token'.