Token-2022 transfer fees and transfer hooks

Two Token-2022 extensions change what happens every time a token moves.

Transfer fee

The transferFeeConfig extension takes a fee on each transfer, set in basis points (100 basis points is 1%) with a maximum per transfer.

• The fee is withheld from the amount sent and held in the recipient's token account.
• A withdraw authority named in the mint collects the withheld fees.
• A new fee is scheduled for a future epoch, so a change is visible on chain before it applies.

Example: at 50 basis points, sending 1,000 tokens delivers 995 and withholds 5.

Transfer hook

The transferHook extension names a program that Token-2022 calls on every transfer. The hook can run its own checks, such as an allowlist or a royalty, and can block the transfer by failing.

A hook is only as trustworthy as its program. If that program is upgradeable, whoever holds the upgrade authority can change the rules later; see upgradeable programs.

Real example

PYUSD carries both extensions. Its token page shows their current settings: the fee in basis points, and the hook program when one is set.

How to check a token

Token pages here list every extension a mint carries. A nonzero transfer fee and a set hook program are called out, so you can see them before you buy.

Related: permanent delegate.