Why Solana Is a Popular Choice for New Tokens

If you are about to launch your first token, one of the first questions is which blockchain to use. A lot of first-time creators end up on Solana. This article explains why in plain terms, and is honest about the trade-offs too.

TL;DR

• Fees are tiny. A basic Solana transaction costs 0.000005 SOL, well under a cent.
• It is quick. Transactions usually confirm within seconds.
• There is no contract to write. Every Solana token uses the same built-in token program, so you only fill in your token's details.
• Extra features are built in. Things like transfer fees or tokens that cannot be sent on are available as optional extensions.
• There are downsides. The network is crowded with new tokens, it had outages in its early years, and some features can only be chosen at creation.

What Makes a Blockchain Good for a New Token?

When you launch a token, the blockchain you pick decides a few practical things:

• How much it costs you to create the token.
• How much it costs your holders every time they send or trade it.
• How long people wait for a transaction to go through.
• How hard it is to set up, and whether you need a developer.

For a first token, especially a community or meme coin, the last point is often the deciding one. Solana does well on all four, which is why it has become so popular for new launches.

Why Are Solana's Fees So Low?

Every transaction on Solana pays a base fee of 5,000 lamports per signature. A lamport is the smallest unit of SOL, so that works out to 0.000005 SOL. Even when SOL's price changes a lot, that stays a fraction of a cent.

When a particular app is very busy, people can add an optional priority fee to get their transaction through faster. The Solana docs point out that these priority fees are local: a rush on one popular app raises fees only for transactions touching that app, not for everyone else on the network.

Why does this matter for a token? Because your holders pay a fee every time they move it. If sending your token costs a few dollars, small holders stop using it. If it costs a fraction of a cent, nobody thinks twice.

How Quick Is Solana?

Solana is built to handle a lot of transactions at once, and a normal transaction usually confirms within a few seconds. For you as a creator, that means the transaction creating your token is done almost as soon as you approve it in your wallet. For your holders, sending or swapping a token feels close to instant.

Why Don't You Need to Write a Smart Contract?

This is the part that surprises people coming from other blockchains, and it is the biggest reason Solana is beginner-friendly.

On many blockchains, every token is its own small program, called a smart contract. Creating a token means writing that contract or copying a template, then deploying it. A mistake in the code can put the whole token at risk.

Solana works differently. It has one shared token program that every token uses. When you create a token, you are not writing new code. You are asking that existing program to set up a new token with your name, symbol, supply and settings. That shared program has been in use for years and handles every token on the network the same way.

This is also why a no-code Solana token creator can exist at all. The tool only has to fill in the details and put together the transaction for you to sign.

What Extra Features Can a Solana Token Have?

Solana has a newer version of the token program, called Token-2022, that adds optional token extensions. These are features built into the token itself, with no extra code. A few examples:

• Transfer fees. A small cut of every transfer goes to an address you choose. Read more in our guide to transfer fees on SPL tokens.
• Soulbound tokens. Tokens that can never leave the wallet they were sent to, useful for badges or certificates. See soulbound tokens on Solana.
• Pausable tokens. A setting that lets an appointed address pause all activity on the token. See the pausable extension.

There is one catch, and it trips up a lot of first-time creators: extensions have to be chosen when the token is created. You cannot add them later. Most meme and community coins do not need any, but it is worth deciding before you launch.

How Does Solana Compare to Ethereum for a New Token?

Ethereum is the other blockchain most people consider. Here is how the two compare for someone launching a first token:

• Fees: On Solana, a basic transaction costs a fixed 0.000005 SOL. On Ethereum's main network, fees go up when the network is busy and can be much higher.
• How a token is made: On Solana, every token uses the same shared token program. On Ethereum, each token is usually its own smart contract following the ERC-20 standard.
• Setup without code: On Solana, you only fill in details, so no-code tools are simple. On Ethereum, a contract still has to be deployed, even if a tool does it for you.
• Track record: Solana is newer and had outages in its early years. Ethereum has been running longer, with a larger set of established projects.

Neither is right for everyone. Ethereum also has "layer 2" networks that lower its fees, at the cost of extra complexity for a beginner. For a first token where low fees and a simple setup matter most, Solana is usually the easier place to start.

What Are the Downsides of Launching on Solana?

It would be dishonest to only list the good parts. Before you launch, keep these in mind:

• It is crowded. Because launching is so cheap and easy, a huge number of new tokens appear every day. Getting noticed is about your idea and your community, not the blockchain.
• The network has had outages. Solana went down several times in its earlier years. It has been far more stable since, but it is part of its history.
• Some choices are permanent. Extensions are chosen at creation, and revoking an authority cannot be undone. Read our guide on revoking mint and freeze authority before you decide.
• A small storage deposit. Solana charges a small deposit, called rent, for every account that stores data, including your token. It is a small fraction of a SOL, but it is easy to forget when planning your budget.

Ready to Launch Your Token on Solana?

If Solana sounds like the right fit, the next step is creating the token itself. Our step-by-step guide to creating an SPL token without code walks through the whole form. If you are launching a meme coin, our beginner's guide to creating a meme coin covers the idea, the community and what comes after.

Disclaimer

This article is for educational purposes only and is not financial, legal, or investment advice. SoulMinter is an independent software tool and is not affiliated with, endorsed by, sponsored by, or partnered with the Solana Foundation, the Ethereum Foundation, or any other third party mentioned or linked in this article. External links are provided for reference only; we do not control their content. All product names, trademarks, and brands are the property of their respective owners and are used for identification purposes only. Always do your own research.