Token Basics
Understanding ERC-20 tokens and how to design your token parameters.
What is an ERC-20 Token?
ERC-20 is the standard for fungible tokens on Ethereum (and compatible chains). It defines a set of rules that tokens must follow to interoperate with wallets, exchanges, and other contracts.
Core Parameters
Token Name
The human-readable name of your token. Examples: "Bitcoin", "Ether", "Novault Token". Immutable after deployment.
Symbol
The shorthand ticker. Examples: BTC, ETH, NVL. Max 6 characters. Immutable after deployment.
Total Supply
Maximum number of tokens that can ever exist. Cannot increase without additional minting logic.
Decimals
How divisible your token is. 18 decimals = 1 token = 1,000,000,000,000,000,000 units. Standard for Ethereum.
Token Design Patterns
Fixed Supply
Total supply is set at deployment and never changes. Most common pattern.
Deflationary
Token burn mechanism that reduces supply over time.
Elastic Supply
Supply adjusts based on price or other metrics.
Choosing Parameters
| Parameter | Example | Notes |
|---|---|---|
| Name | MyToken | Keep memorable, avoid generic names |
| Symbol | MTK | Unique, 3-6 chars |
| Supply | 1,000,000,000 | Higher supply = lower price |
| Decimals | 18 | Standard for ERC-20 |
Common Mistakes
- ❌ Choosing a supply that's too small (low liquidity)
- ❌ Misspelled name or symbol
- ❌ Using decimals other than 18 (breaks compatibility)
- ❌ Not considering market psychology (supply size affects perception)