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The white paper issued by Solana stated, “Token extensions are the next generation of the Solana Program Token Library standard. Token extensions (TE) are about optionality and choice - and represent the next major step forward for what’s possible on the Solana Network.”
Solana (SOL) Labs has released the token extensions upgrade for the SPL token standard.
Applicable to both conventional crypto tokens and NFTs, token extension is a new functionality that allows developers on the Solana network to implement custom rules for their tokens. Solana currently supports two types of token extensions: mint and account extensions.
1/ The future of tokenization is now: Introducing token extensions, ready-to-use advanced token functionality on Solana.https://t.co/zNw9qWgvjA
— Solana (@solana) January 24, 2024
Token extensions empower developers to rapidly build customized token experiences & designed to meet business compliance needs.🧵 pic.twitter.com/dHkKoNS28X
Mint extensions are built on top of Solana tokens and allow developers to create interest-bearing coins, group tokens, limit currency transfers, set permanent delegate privileges, and perform other tasks to extend the capabilities of their tokens.
Meanwhile, account extensions are a set of controls that can be added to Solana accounts to restrict their features. These include the provisions to mandate memos when transferring tokens, create immutable owners, restrict programs from interacting with tokens, among others.
In the white paper, Solana Labs claimed that token extensions can help organizations to meet compliance standards. Their case study noted that besides simplifying payment reconciliation and preserving user privacy, the token extension facility can make it easy to launch stablecoins.
Soon after the announcement, Solana resumed an uptrend in pricing. The SOL token is currently valued at $88, up by roughly 6% over the last 24 hours.