Token Standards & Creator Tax Support

Leveraging Solana's SPL Token Standard

Solana's SPL token standards are a crucial part of the Solana blockchain, facilitating the creation and management of tokens. SPL defines the set of rules that define how tokens should operate on the Solana network, where compliance with these standards will ensure interoperability with Solana wallets and smart contracts. We leverage the Token-2022 program which introduces new features to the standard SPL token and will allow users to explore even more use cases for SPL tokens. The Token-2022 maintains the core benefits of the original SPL standard while adding new functionalities. This ensures that tokens remain compatible with existing infrastructure (for example, support in existing Solana wallets and trading on Raydium). More specifically, we use its ability to create tokens with transfer fees (tax). This new functionality allows for more sophisticated tokenomics and provides additional rewards to memecoin creators.

OnlyBags supports two memecoin standards

• Traditional Memecoin - memecoin with meta data (Name, Ticker, Text & Image/GIF)

• Taxed Memecoin - memecoin with meta data and build-in transfer tax

With transfer fees, developers can launch memecoins that automatically collect a fee from each transaction. We believe that transfer taxes provide better rewards for creators and provide better incentive alignment so there is less rugpull risk.

Enhanced Rewards for Creators

• Integrating a transfer tax in memecoins provides continuous rewards to creators by deducting a small percentage of each transaction and allocating it to the creator’s wallet.

Aligning Incentives

• Creates a sustainable income stream ensuring that creators earn revenue as long as their tokens are traded, and incentivizes the creation (and continued support) of quality memecoins and content that resonates with the community.