Token Basics

Understanding different token types and their use cases on TokenFabric

Understanding Token Types

Before creating your digital asset on TokenFabric, it’s important to understand the different token types available and choose the one that best fits your project.

Token Standards

ERC20 Tokens

Best for fungible assets like:

• Cryptocurrencies
• Utility tokens
• Reward points
• Financial instruments

Characteristics:

• All tokens are identical
• Divisible units
• Easy to trade
• Wide compatibility

ERC1155 Tokens

Ideal for unique assets like:

• Digital collectibles
• Gaming items
• Membership passes
• Event tickets

Characteristics:

• Can be unique or semi-fungible
• Multiple items in one contract
• Gas efficient
• Batch transfers

TokenFabric simplifies creation of both standards with no coding required.

Choosing Your Token Type

Use Case Analysis

1. ERC20 Best For:

   • Payment systems
   • DeFi applications
   • Community tokens
   • Loyalty programs

2. ERC1155 Best For:

   • Digital art
   • Gaming assets
   • Access passes
   • Mixed collections

Token Properties

Basic Properties

1. Name & Symbol

   • Choose memorable names
   • Use clear symbols
   • Check availability
   • Consider branding

2. Supply Options

   • Fixed supply
   • Mintable
   • Burnable
   • Maximum caps

Advanced Features

1. Token Utilities

   • Access rights
   • Voting power
   • Reward mechanisms
   • Platform benefits

2. Trading Features

   • Transfer restrictions
   • Trading pairs
   • Liquidity options
   • Price mechanisms

Creating Tokens on TokenFabric

ERC20 Creation

1. Basic Setup

   • Token name
   • Symbol
   • Initial supply
   • Distribution plan

2. Advanced Options

   • Minting rights
   • Burning options
   • Trading settings
   • Curve selection

ERC1155 Creation

1. Collection Setup

   • Collection name
   • Metadata
   • Item types
   • Supply per item

2. Item Configuration

   • Individual properties
   • Rarity levels
   • Transfer rules
   • Pricing structure

Best Practices

Token Design

1. Planning

   • Define clear purpose
   • Consider scalability
   • Plan distribution
   • Set parameters

2. Implementation

   • Test thoroughly
   • Start small
   • Monitor activity
   • Adjust as needed

Take time to plan your token economics. Changes after launch can be difficult or impossible.

Common Questions

Which standard should I choose?

Consider:

• Asset type (fungible vs unique)
• Use case requirements
• Trading needs
• Platform compatibility

Can I change token properties later?

Some properties are permanent:

• Token standard
• Name and symbol
• Contract features

Others may be adjustable based on setup

How do I ensure token security?

Key steps:

• Use TokenFabric’s audited contracts
• Test thoroughly
• Set appropriate permissions
• Monitor activity

Token Management

Launch Preparation

1. Documentation

   • Clear description
   • Use cases
   • Technical details
   • Distribution plan

2. Community Building

   • Engage users
   • Gather feedback
   • Build awareness
   • Create value

Ongoing Management

1. Monitoring

   • Track distribution
   • Monitor trading
   • Gather metrics
   • Adjust strategy

2. Development

   • Add utilities
   • Improve features
   • Expand use cases
   • Build partnerships

Next Steps

Continue learning about:

1. Understanding bonding curves →
2. Token metrics and analysis →
3. Asset management →

Ready to Create?

Start creating your token with TokenFabric’s intuitive interface →

Quick Reference

Token Creation Checklist

• Define token purpose
• Choose standard
• Plan economics
• Set parameters
• Test thoroughly
• Launch strategy
• Monitor performance

Keep this guide handy as you plan and create your token on TokenFabric.