Functionalities

The Token Program operates through a set of instructions that allow you to create token mints, initialize token accounts, transfer tokens between accounts, and manage authorities.

It also supports multisignature accounts for enhanced security and provides mechanisms for freezing accounts and delegating token authority.

Initializing an Account

The token program has different instructions and helpers that abstract away the complexities of intializing a new account.

There are different instructions if we want to initialize a Mint account or a Token account, in the case of the Associated Token account, the associated token program uses the initializeAccount instruction under the hood after having derived the correct program derived address.

This function just initializes the account, so we need to make sure that we use the createAccount() instruction from the System Program before, and set the correct owner (token program), space and lamports to make it rent exempt.

Transfer

Moves tokens from one account to another. This is the basic operation for sending tokens between users.

The owner of the token account needs to be a Signer of that transaction, and the destination of that transfer needs to be another token account.

The amount that we decide to transfer is without decimals. So if we want to send 1 token that has 6 decimals we'll need to use the 1e6 notation.

Approve

Grants a delegate the authority to transfer a specific amount of tokens on behalf of the account owner. This enables programmatic token transfers without giving full account control.

We set an "approved" amount, and the delegate can transfer only up to that amount

Revoke

Removes the current delegate's authority over the account, returning full control to the account owner.

Immediately cancels any existing delegation and only the account owner can revoke delegation (not the delegate itself)

Set Authority

Changes the authority of a mint or account. This allows transferring ownership or updating specific authority types.

Can change mint authority, freeze authority, or account owner and setting authority to None is an irreversible action that permanently removes that capability

Mint To

Creates new tokens and deposits them into a specified account. Only the mint authority can perform this operation.

Increases the total supply of the token and the amount respects the mint's decimal configuration

Burn

Permanently destroys tokens by removing them from circulation. This reduces the total supply of the token.

Permanently reduces the token's total supply and this action can be performed by the account owner or delegate

Close Account

Closes a token account and transfers its remaining SOL rent to a destination account. The token account must have zero balance unless it's a native SOL account.

From Token2022 it's possible to close a Mint account that has a supply of 0

Freeze Account

Prevents all token operations on an account until it's thawed. Only the mint's freeze authority can perform this operation.

Completely disables transfers, approvals, and burns and it only affects the specific frozen account

Thaw Account

Re-enables token operations on a previously frozen account. Only the mint's freeze authority can thaw accounts.

Restores full functionality to a frozen account and can only be performed by the mint's freeze authority