Transfer Fee

Transfer Fee

Transfer Fee is a Token-2022 mint extension that withholds a fee in basis points (1 basis point equals 0.01 percent) per transfer, with an optional maximum cap. The fee is withheld at the recipient, not deducted from the sender — so the recipient receives less than what was sent.

Use cases

• Real-world-asset tokens with issuer royalty
• Treasury funding for DAO tokens (treasury collects the fees)
• Anti-sniping mechanisms for token launches with high fees in the first minutes

UX pitfall

Wallets do not always surface the effective value extraction prominently. With a 9.99 percent fee (999 basis points, the technical maximum), every trade loses value. DEX quotes can be wrong when the pool program does not model Transfer Fee.

Fee harvesting

The authority can periodically harvest collected fees from the TransferFeeAmount account states. That is its own instruction, not an automatic receipt.

Deep dive

Pillar Token-2022 explained.