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ZYJLiu authored Dec 11, 2023
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21 changes: 10 additions & 11 deletions content/guides/token-2022/transfer-fee.md
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Expand Up @@ -21,11 +21,11 @@ With any form of transaction, there's often a desire to collect or apply a fee.
Similar to a small service charge every time you transfer money at a bank or the
way royalties or taxes are collected for particular transfers.

With Token Extensions, the `TransferFee` extension allows you to configure a
transfer fee directly on the Mint Account, enabling fees to be collected at a
protocol level. Every time tokens are transferred, the fee is set aside in the
recipient's Token Account. This fee is untouchable by the recipient and can only
be accessed by the Withdraw Authority.
The `TransferFee` extension allows you to configure a transfer fee directly on
the Mint Account, enabling fees to be collected at a protocol level. Every time
tokens are transferred, the fee is set aside in the recipient's Token Account.
This fee is untouchable by the recipient and can only be accessed by the
Withdraw Authority.

The design of pooling transfer fees at the recipient account is meant to
maximize parallelization of transactions. Otherwise, one configured fee
Expand All @@ -36,8 +36,6 @@ In this guide, we'll walk through an example of creating a mint with the
`TransferFee` extension enabled using Solana Playground. Here is the
[final script](https://beta.solpg.io/6570e5b7fb53fa325bfd0c4e).

Let's get started!

## Getting Started

Start by opening this Solana Playground
Expand Down Expand Up @@ -141,7 +139,7 @@ const mintLen = getMintLen([ExtensionType.TransferFeeConfig]);
const lamports = await connection.getMinimumBalanceForRentExemption(mintLen);
```

With Token Extensions, the size of the mint account will vary based on the
With Token Extensions, the size of the Mint Account will vary based on the
extensions enabled.

## Build Instructions
Expand Down Expand Up @@ -486,6 +484,7 @@ transaction on the SolanaFM.

## Conclusion

The `TransferFee` extension makes it much easier to handle transfer fees,
integrating them at the protocol level. It offers a superior UX for users and
dApp developers, opening up new possibilities and use cases.
The `TransferFee` extension enables token creators to enforce fees on each
transfer without requiring extra instructions or specialized programs. This
approach ensures that fees are collected in the same currency as the transferred
tokens, simplifying the transaction process.

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