Crypto glossary
SPL token (Solana token standard)
An SPL token is a token created with Solana's shared token program, the network's equivalent of ERC-20 for fungible tokens and also used for many NFTs.
On Ethereum each token deploys its own contract. Solana works differently: a single on-chain Token Program handles all standard tokens. Creating a token means creating a mint account that records supply, decimals and the authorities allowed to mint more or freeze accounts. Each user's balance lives in a separate token account linked to their wallet, usually at a predictable associated address.
Most assets on Solana, from USDC to memecoins launched in minutes, are SPL tokens, and NFTs use the same program with a supply of one plus metadata. A newer version, Token-2022 or token extensions, adds optional features such as transfer fees, confidential transfers, interest-bearing balances and transfer hooks for compliance.
Because users need a token account for each token, receiving a new token costs a small rent deposit in SOL, which can be recovered by closing empty accounts. Before buying, it is worth checking whether the mint and freeze authorities have been revoked: if not, the creator can still issue new tokens or freeze holders' balances.
Example
A user receives a new SPL token for the first time; their wallet creates an associated token account and sets aside about 0.002 SOL as rent, refundable if they later close the empty account.