Solana Delivers 'Token Extensions' to Attract Compliance-Minded Token Developers
Transfer fees: Tokens automatically pay a fee upon transfer, much like the royalties NFTs sometimes pay to their artists when they're sold on the secondary market. But unlike NFT royalties, which have suffered from various marketplaces refusing to enforce them, fees implemented through token extensions can't be bypassed.
Confidential transfers: Tokens will use zero-knowledge proofs to hide confidential information like payment amount during transfers. Chain sleuths will be able to see that x address sent tokens to y address, but not how much they sent.
Permanent delegate authority: Token issuers can retain control over their tokens, particularly the ability to transfer or even destroy them no matter who their holder is. The briefing materials envision this being useful for stablecoins, securities tokens and credentials.
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Non Transferability: Token holders cannot send their asset to a different wallet. This could be useful for credentialing.
Edited by Bradley Keoun.
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Danny Nelson
Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.
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