Definition

Transfer Fee is a Token-2022 extension that lets creators define a percentage taken from every transfer. Fees accumulate in a fee-collector account and can be withdrawn by the fee authority. Used for "tax token" mechanics.

Aggregators and DEXes may skip route quotes involving transfer-fee tokens because slippage models get complicated. Traders often avoid tax tokens, so meme coins usually stick with the classic SPL Token program.

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SPL vs Token-2022

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