Token-2022

The Token-2022 program extends the functionality provided by the Token program. This means that the Token-2022 program is not only backward compatible but also includes all the functions of the original Token program, as well as additional functionality often referred to as token extensions.

Benefits

• Flexibility

  Some token extension are incompatible, however, you can create a variety of custom combinations that fit your needs.

• Reduced risk

  Using audited and well-tested extensions helps protect protocols and funds.

• Reduced testing costs

  Extensions are added by specifying the extensions in code, this reduces number of errors and saves time on testing.

• Reduced development time

  Extensions are uniform and reusable, which significantly speeds up development.

Extensions

There are two types of extensions:

• Mint Extensions
• Token Account Extensions

Mint extensions:

• Confidential transfers: Confidential transactions that do not reveal the amount transferred.
• Transfer fees: Collection of fees on each transfer. The fees are then sent to a specified account.
• Mint close authority: Enables mint owners to close their accounts and reclaim the lamports.
• Transfer hook: Calls specific programs when a token transfer occurs.
• Interest-bearing tokens: Set an interest rate on a token. The interest can be tracked and displayed.
• Non-transferable tokens: Restrict token transfers between users.
• Permanent delegate: Permanently assign a delegate that has the authority to manage token accounts of a given mint.
• Metadata pointer: Allows token creators to link an external address that contains the official metadata of the token.
• Metadata: Allows integration of metadata into tokens through custom fields.

Token account extensions include:

• Memo required on transfer: Requires an attached memo as a message during each token transfer.
• Immutable owner: Makes it impossible to reassign ownership of an account.
• Default account state: Freezes all new token accounts so that users must interact with the project in some way to unfreeze the accounts/tokens.
• CPI guard: Restricts how other programs can interact with your token by prohibiting certain actions inside cross-program invocations.