Solana token glossary

A distribution method where cryptocurrency tokens are sent to wallet addresses for free, typically as a marketing strategy or to reward early supporters. Airdrops are commonly used to increase token distribution and community engagement.

A decentralized exchange design that prices trades with a formula over a liquidity pool instead of an order book. On Raydium, "AMM" usually means AMM v4, the legacy constant product pool that needs an OpenBook market.

• AMM vs CPMM Comparison

Special permissions on Solana tokens that control various aspects of token behavior. Mint authority can create new tokens, freeze authority can freeze accounts, and update authority can change metadata. On SPL Token Launcher you can revoke mint and freeze authority and lock metadata in the same transaction as creation.

• Create Token Guide

An encoding format used for Solana addresses that avoids ambiguous characters (like 0, O, I, l). This makes addresses easier to read and less prone to errors when copying. All Solana public keys are displayed in Base58 format.

The average time it takes to produce a new block on a blockchain. Solana has an exceptionally fast block time of approximately 400 milliseconds, enabling high-speed transaction processing.

A distributed digital ledger technology that records transactions across many computers in a way that makes them virtually impossible to alter. Each block contains transaction data and is cryptographically linked to the previous block.

The process of permanently removing tokens from circulation by sending them to an inaccessible wallet address. Burning reduces the total supply permanently.

A Raydium pool type where each liquidity provider picks a price range. Liquidity is deeper inside that range, but a position stops earning fees once the price leaves it, so it needs monitoring. Not the same as CPMM.

• AMM vs CPMM Comparison

A space-efficient token format on Solana that stores account data in Merkle trees instead of regular accounts, which makes minting to many wallets much cheaper. SPL Token Launcher creates regular SPL tokens, not compressed ones.

The mechanism by which blockchain nodes agree on the current state of the network. Solana uses Proof of History combined with Proof of Stake for fast and efficient consensus.

Raydium's newer constant product pool. Like AMM v4 it prices trades with x * y = k and keeps liquidity across the full price range, but it needs no OpenBook market, supports Token-2022 tokens and lets the pool creator choose a fee tier. It is not concentrated liquidity (that is CLMM). SPL Token Launcher creates Raydium CPMM pools.

• AMM vs CPMM Comparison
• Add Liquidity Guide

A cryptocurrency wallet where a third party holds your private keys on your behalf. While convenient, this means you don't have full control over your assets. Non-custodial wallets like Phantom give you full ownership.

An organization represented by rules encoded as a computer program that is transparent and controlled by organization members rather than a central authority. DAOs use tokens for governance voting.

The number of decimal places a token supports. Solana tokens typically use 9 decimals (like SOL itself), meaning 1 token can be divided into 1 billion smallest units for precise transactions.

Financial services built on blockchain technology that operate without traditional intermediaries like banks. DeFi includes lending, borrowing, trading, and yield farming through smart contracts.

Solana's test network where developers can experiment with applications using fake SOL tokens. Devnet mirrors mainnet functionality but has no real economic value, making it perfect for testing.

A peer-to-peer marketplace for cryptocurrency trading that doesn't require a central authority. DEXes like Raydium allow users to trade directly from their wallets using smart contracts.

• Add Liquidity to Raydium

The token standard on Ethereum blockchain, similar to SPL tokens on Solana. ERC-20 defines a common interface for fungible tokens but with higher fees and slower transactions than Solana's SPL standard.

The percentage of each trade charged by a pool and shared with its liquidity providers. Raydium CPMM pools created on SPL Token Launcher can use 0.25%, 0.5%, 1%, 2% or 4%. Higher tiers earn more per trade but make trading more expensive.

• Add Liquidity Guide

A token permission on Solana that allows freezing specific token accounts, preventing any transfers. Removing freeze authority shows holders that nobody can freeze their tokens.

• Create Token with Removed Authority

A type of token where each unit is identical and interchangeable with any other unit of the same token. SPL tokens are fungible, unlike NFTs which are unique.

Transaction costs paid to blockchain validators for processing transactions. On Solana they are called transaction fees and are usually a tiny fraction of a SOL, far lower than typical Ethereum gas.

A cryptocurrency that grants holders voting rights on protocol decisions. Governance tokens enable decentralized decision-making for blockchain projects and DAOs.

A fixed-size alphanumeric string generated from data of any size using a cryptographic function. Hashes are used to verify transaction integrity and create unique identifiers.

Crypto slang derived from a misspelling of 'hold,' meaning to keep your cryptocurrency rather than selling. HODLers believe in long-term value appreciation regardless of short-term price movements.

A temporary unrealized loss experienced by liquidity providers when the price ratio of pooled tokens changes. The loss becomes permanent only when liquidity is withdrawn during price deviation.

A decentralized file storage network where files are addressed by their content, so a stored file can't be swapped for another. When you create a token here, your logo and metadata are uploaded to IPFS and stay available as long as they are pinned.

A Solana infrastructure provider whose validator client and block engine let senders submit bundles: groups of transactions that land together, in order, or not at all. Bundles are often used to reduce front-running and sandwich attacks.

Identity verification requirements used by centralized exchanges and some DeFi protocols. Most decentralized token creation and trading doesn't require KYC.

The ease with which a token can be bought or sold without significantly affecting its price. High liquidity means trades can be executed quickly with minimal slippage.

A collection of tokens locked in a smart contract that enables decentralized trading. Liquidity providers deposit token pairs and earn fees from trades executed against the pool.

• Add Liquidity Guide
• Token Cost Calculator

Someone who deposits tokens into a liquidity pool to enable trading. LPs earn a share of trading fees proportional to their contribution to the pool.

The primary Solana network where real transactions with actual value occur. Unlike devnet, mainnet SOL and tokens have real economic value and are used for production applications.

The total value of all tokens in circulation, calculated by multiplying the current price by the circulating supply. Market cap is used to compare the relative size of different cryptocurrencies.

A cryptocurrency created primarily for entertainment, community engagement, or viral marketing rather than utility. Meme coins are highly volatile, and most lose value.

Descriptive information about a token including its name, symbol, description, and image URL. On Solana, the name, symbol and a link to the metadata file live in an on-chain Metaplex account; the file and logo are usually on IPFS. Wallets and explorers read both.

• Token Creation Guide

Profit that validators or miners can extract by reordering, inserting, or censoring transactions within a block. MEV protection services like Jito help prevent exploitation.

A permission that allows creating additional token supply after initial creation. Removing it guarantees nobody, including you, can ever increase the supply.

• Create Token
• Cost Calculator

A security feature requiring multiple private keys to authorize a transaction. Multisig wallets are used by DAOs and teams to prevent single points of failure.

A unique digital asset on the blockchain representing ownership of items like art, collectibles, or virtual real estate. Unlike SPL tokens, each NFT is one-of-a-kind.

A computer that maintains a copy of the blockchain and validates transactions. Solana is run by a large set of independent validators around the world.

Data or transactions that are recorded directly on the blockchain. On-chain data is immutable and publicly verifiable, providing transparency and security.

A decentralized order book protocol on Solana that enables limit orders and advanced trading. Raydium AMM v4 pools need an OpenBook market; Raydium CPMM pools do not.

A widely used Solana wallet available as a browser extension and mobile app. SPL Token Launcher is Phantom Verified.

A secret cryptographic code that proves ownership of a wallet and allows signing transactions. Never share your private key - anyone with it has complete control over your funds.

Solana's unique consensus innovation that creates a historical record proving events occurred at specific times. PoH lets validators agree on the order of events without waiting on each other, which is a large part of Solana's speed.

A consensus mechanism where validators stake cryptocurrency as collateral to participate in block production. Solana uses PoS combined with Proof of History for efficient consensus.

Your wallet address that can be shared publicly to receive funds. Public keys are derived from private keys but cannot be used to access or move funds.

A fraudulent scheme where organizers artificially inflate a token's price through misleading promotion, then sell their holdings at the peak. Always research tokens thoroughly before investing.

A decentralized exchange (DEX) on Solana with three pool types: AMM v4, CPMM and CLMM. SPL Token Launcher creates Raydium CPMM pools, so your token can be traded on Raydium and the apps that route through it.

• Add Liquidity to Raydium

A small SOL deposit required to keep accounts and data on Solana. Rent ensures blockchain storage is used efficiently. The rent is refundable when an account is closed.

A connection endpoint for interacting with Solana blockchain nodes. Applications use RPC endpoints to submit transactions, query balances, and access blockchain data.

A scam where developers abandon a project and run away with investor funds, typically by draining liquidity pools. Revoked authorities and locked liquidity remove some ways to rug, but a creator holding a large share of supply can still sell it.

A series of 12-24 words that can restore access to a wallet. Store your seed phrase securely offline - it's the master key to all your crypto assets.

The difference between the expected price of a trade and the actual execution price. High slippage occurs in low-liquidity pools or during volatile market conditions.

Self-executing code stored on the blockchain that automatically enforces agreement terms. Solana programs (smart contracts) power DEXes, lending protocols, and token functionality.

The native cryptocurrency of the Solana blockchain used for transaction fees, staking, and participating in DeFi. Creating and managing SPL tokens requires small amounts of SOL.

A high-performance blockchain with blocks about every 400 ms and very low transaction fees. Solana hosts many DeFi applications, wallets and token projects.

Solana Program Library token standard - the primary token format on Solana, equivalent to ERC-20 on Ethereum. All tokens created with SPL Token Launcher follow this standard.

• Create SPL Token
• Token Guide

Locking cryptocurrency to support network security and earn rewards. SOL can be staked with validators, who share their staking rewards with delegators. Rewards vary and are not guaranteed.

Token supply metrics: Total supply is all existing tokens, circulating supply is tokens available for trading, and max supply is the theoretical maximum that can ever exist.

A digital asset created on a blockchain representing value, utility, or ownership. SPL tokens on Solana can represent currencies, rewards, governance rights, or any programmable asset.

The process of creating and deploying a new cryptocurrency token to a blockchain. SPL Token Launcher simplifies this process to just 4 steps with no coding required.

• Token Cost Calculator

The economic model and distribution structure of a cryptocurrency including supply, allocation, vesting schedules, and utility. Well-designed tokenomics are crucial for long-term project success.

A measure of blockchain throughput capacity. Solana processes thousands of transactions per second in normal use, far more than Ethereum's base layer.

A unique identifier for a completed blockchain transaction. Transaction signatures can be used to verify and track transactions on Solana explorers like Solscan.

Permission to change a token's metadata (name, symbol, logo, links) after creation. Locking metadata makes it immutable, so nobody can change the token's identity again.

• Create Token

A node operator who participates in Solana's consensus by validating transactions and producing blocks. Validators stake SOL and earn rewards for their service to the network.

A custom token address containing specific characters (prefix or suffix) you choose. Up to 4 characters on SPL Token Launcher: 1 to 2 are free, 3 cost +0.1 SOL and 4 cost +0.2 SOL.

• Vanity Address Preview
• Vanity Address Guide

A schedule that gradually releases tokens over time rather than all at once. Vesting is used for team allocations and investor tokens to prevent immediate selling pressure.

Software or hardware for storing cryptocurrency private keys and managing digital assets. SPL Token Launcher works with Phantom and with Solana Mobile wallets on Android.

The vision of a decentralized internet built on blockchain technology where users own their data and assets. Web3 applications include DeFi, NFTs, and decentralized social media.

An individual or entity holding a large amount of cryptocurrency that can significantly influence market prices through their trading activity.

A list of approved addresses or entities, for example the addresses allowed to take part in a sale or claim an airdrop.

A token representing another cryptocurrency on a different blockchain. Wrapped SOL (wSOL) is SOL converted to the SPL token format for DeFi compatibility.

The practice of moving cryptocurrency between DeFi protocols to maximize returns. Yield farmers seek the highest APY by providing liquidity, staking, or lending.