Solana launches token expansion feature, providing native compliant tooling codebase.

Solana launches SLP token extension feature, providing the team with more compliant token functionalities, including audit transfers, token control, tax capabilities, etc., to meet Solana's future needs for large-scale adoption of diverse enterprise requirements.

SLP Token Extension Introduction

Problem to Solve: Enhancing Developer Experience

In the past, Dapp developers had to rely on their own protocols, external code libraries, and combinations of different projects to truly leverage the programmability of tokens.

The newly launched SLP token extension provides a range of new features. By enabling the token minting code library open-sourced on the Solana blockchain, injecting a set of rich native features into tokens can provide developers with a more convenient development environment to meet diverse use cases, offering the potential for new use cases in digital asset development.

The token extension allows developers to natively access more functions and decide on their own which functions to enable or disable at any time.

13 Token Extension Features

A total of thirteen token extension features have been introduced this time, most of which are related to compliance and enterprise application scenarios:

• Confidential Transfers: Encrypt token transfer amounts using zero-knowledge proof technology while providing the audit permissions required for compliance.
• Transfer Fees: Implement a mechanism for deducting token transfer fees for future tax needs.
• Transfer Hooks: Enable token issuers to control the interaction between tokens and users, including permissioned whitelists.
• Permanent Delegate Authority: Token issuers can permanently control permissions to manage token transactions and destruction.
• Metadata: Record any data on tokens through custom fields, allowing projects to have potential custom metadata flexibility in each token.
• Metadata Pointer: Standardize and simplify the process of adding metadata to tokens.
• Default Account State: Freeze transfer functions for specific accounts of the token.
• Non-transferability: Only allow tokens to be transferred to a specific wallet, useful for certificates and user identification.
• Mint Close Authority: Close token accounts that are no longer in use.
• Immutable Owner: Ensure that ownership of token accounts cannot be transferred again, enhancing security.
• Interest Bearing Tokens: Allow projects to set interest rates and store them directly on accounts. Interest is based on continuous compounding with network timestamps while maintaining the total token supply.
• Required Memo on Transfer: Force every token transfer to include an explanatory memo.
• CPI Guard: Prevent certain operations from being called across programs to prevent unauthorized signatures and operations by users.

The source code for the extension features can be found on GitHub.

Customizable Combination Options

Developers can combine multiple extension features for simultaneous use and choose combinations that suit the project's needs. For example, they can use Confidential Transfers and Required Memo on Transfer together to achieve private transfers with a memo required for each transaction.

However, some combinations of extension features may not make sense. For instance, adding Transfer Fees to the Non-transferability feature would render the token untransferrable and therefore unable to collect fees.

Solana's Increasing Compliance Requirements

Major traditional institutions have been endorsing Solana for its high performance and robust development ecosystem, with many projects joining in. For example, Paxos recently launched USDP on Solana, GMO Trust plans to introduce regulated stablecoins, and Helium Mobile joined the ecosystem last year.