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Tokens on SphereNet

SphereNet uses the SPL Token-2022 standard with governance controls over token minting. While any program can create tokens, minting requires governance approval and verification.

Extension Framework​

Token-2022 is designed with an extensible architecture where functionality can be added through optional extensions. Each token mint can be configured with different combinations of extensions to meet specific requirements. Extensions are:

  • Optional: Can be mixed and matched based on needs
  • Mutable: Can be configured after mint creation if authority is set
  • Space-efficient: Only included when needed
  • Independent: Can operate without affecting other extensions
  • Configurable: Extension-specific update authorities can modify settings

Token Minting Process​

New tokens require governance approval before minting can be enabled:

  1. Proposal Submission

    Submit governance proposal containing:

    • Proposed mint public key
    • Token specifications and purpose
    • Selected Token-2022 extensions
    • Minting authority structure
    • Compliance framework

  2. Technical Review

    Token specific review including verification of Token-2022 extensions, validation of mint public key, assessment of authority structure, and security evaluation.

  3. Compliance Review

    This stage includes a regulatory requirements check, risk assessment, and monitoring capabilities verification.

  4. Governance Vote

    CORE holders vote on proposal. If approved, the mint public key is added to the whitelist and the token program can create mint at specified address. As a result minting authority can begin operations.

    Only mints created at pre-approved addresses can be used on SphereNet. This ensures all tokens are properly reviewed and authorized before entering circulation.

Mint Whitelist​

The governance program maintains a whitelist of approved token mints:

pub struct MintWhitelist {
    pub last_update_slot: u64,
    pub mints: Vec<Pubkey>,
}

Core Extensions​

Token-2022 extensions available on SphereNet include:

Required Memo​

  • Enforces memo field on all transfers
  • Required for payment references
  • Enables transaction tracking
  • Supports compliance reporting

Metadata Extension​

  • On-chain token information storage
  • Name, symbol, and URI fields
  • Updateable by governance
  • Links to off-chain documentation

Confidential Transfers​

  • Private token transfers using Twisted ElGamal encryption
  • Zero-knowledge proofs for amount validation
  • Configurable visibility for different participant types
  • Maintains auditability through authorized verifiers

Confidential Mint and Burn​

  • Private minting operations
  • Private burn operations
  • Supply privacy with auditability
  • Authorized minter controls
  • Zero-knowledge supply proofs

Transfer Hook​

  • Pre/post transfer validation logic
  • Custom compliance rule enforcement
  • Institutional policy controls
  • Automated verification checks

Immutable Owner​

  • Prevents account authority changes
  • Required for institutional custody
  • Permanent ownership structure
  • Regulatory compliance support

Scaled UI Amount​

  • Configurable decimal places
  • Custom scaling factors
  • Precise amount representation
  • Traditional finance compatibility