Token Design
Technical parameters that shape how a token behaves on-chain.
Designing a token can also have technical approach: choices you make in the contract (or at the protocol level for native tokens) determine precision, issuance, transfer rules, permissions, gas usage, and composability. Below are the core levers to consider when specifying a token
Decimals (Precision)
Defines the smallest unit and affects UX, pricing, rounding, and integrations.
- 6 decimals → smallest unit is 0.000001
- 18 decimals → smallest unit is 0.000000000000000001 (common on EVM)
Implementation detail: ERC‑20 exposes decimals(); native tokens inherit precision from the chain/protocol.
Total Supply and Issuance Model
Specify whether supply is fixed at deployment or elastic over time.
- Fixed supply: immutable cap set in constructor/genesis
- Elastic supply: emissions/vesting/mint/burn mechanisms adjust supply
- Programmatic schedules vs role‑gated actions
Minting and Burning Functions
Control how supply can change post‑deployment.
mint(address,toAmount): who can call (owner,MINTER_ROLE)? caps?burn(amount)/burnFrom(address,amount): opt‑in user burn vs admin burn- Event emissions (
Transferfrom/to zero address) for indexers
Transfer Mechanics
Define how balances move and what hooks apply.
- Plain ERC‑20
transfer/transferFrom - Fee/tax on transfer (discouraged for DeFi composability)
- Blacklist/whitelist or trading windows (be careful: centralization + DEX issues)
- Pausable transfers (circuit breakers via
Pausable)
Allowance and Approvals
Permissions for third‑party spenders.
- Standard
approve/allowance/transferFrom - EIP‑2612 Permit (gasless approvals via signatures)
- Race‑condition safe patterns (set to 0 then new amount)
Access Control and Roles
Who can mint, pause, upgrade, or change parameters.
OwnablevsAccessControl(role‑based:MINTER_ROLE,PAUSER_ROLE)- Timelocks and multisig admins for safer governance changes
Choosing these parameters up front ensures your token remains secure, composable, and easy to integrate while matching the precision, control, and lifecycle you intend.
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