> ## Documentation Index
> Fetch the complete documentation index at: https://docs.xyzchain.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Token Overview

> Create and manage CW20 fungible tokens

# Token Operations

XYZ Chain supports CW20 tokens - the CosmWasm standard for fungible tokens, similar to ERC-20 on Ethereum or SPL tokens on Solana.

## What is CW20?

CW20 is a specification for fungible tokens on CosmWasm chains. It defines:

* Token metadata (name, symbol, decimals)
* Balance tracking
* Transfer operations
* Minting and burning
* Allowances (approve/transferFrom)

## Token Commands

| Command              | Description                   |
| -------------------- | ----------------------------- |
| `xyz token create`   | Deploy a new CW20 token       |
| `xyz token mint`     | Mint tokens to an address     |
| `xyz token transfer` | Send tokens to a recipient    |
| `xyz token burn`     | Burn tokens from your balance |
| `xyz token balance`  | Check token balance           |
| `xyz token info`     | View token metadata           |
| `xyz token list`     | List all tokens you hold      |

## Quick Start

### 1. Deploy the CW20 Base Contract

First, ensure the CW20 base contract is deployed on the chain:

```bash theme={null}
# Run the deployment script
./scripts/deploy-cw20.sh

# Save the code ID
xyz config set cw20-code-id 1
```

### 2. Create a Token

```bash theme={null}
xyz token create \
  --name "My Token" \
  --symbol "MTK" \
  --decimals 6 \
  --initial-supply 1000000000000 \
  --from mykey
```

### 3. Check Balance

```bash theme={null}
xyz token balance xyz1tokencontract... --key mykey
```

### 4. Transfer Tokens

```bash theme={null}
xyz token transfer xyz1tokencontract... xyz1recipient... 1000000 --from mykey
```

## Token Properties

When creating a token, you define:

| Property         | Description         | Example       |
| ---------------- | ------------------- | ------------- |
| `name`           | Human-readable name | "My Token"    |
| `symbol`         | Trading symbol      | "MTK"         |
| `decimals`       | Decimal places      | 6             |
| `initial_supply` | Starting supply     | 1000000000000 |
| `minter`         | Who can mint more   | Your address  |

## CW20 vs Native Tokens

| Feature   | CW20 Tokens       | Native (uxyz)    |
| --------- | ----------------- | ---------------- |
| Creation  | Anyone can create | Fixed at genesis |
| Inflation | Configurable      | Zero             |
| Query     | Contract query    | Bank module      |
| Transfer  | Contract execute  | Bank send        |
| Gas Cost  | Higher            | Lower            |

## Prerequisites

Before creating tokens:

1. **CW20 Code ID** - The base contract must be deployed
2. **Sufficient Balance** - Gas fees in uxyz
3. **Key Setup** - A keypair in your keyring

Check CW20 is configured:

```bash theme={null}
xyz config get cw20-code-id
# Should return a number like: 1
```

If not configured, see [CW20 Setup](/tokens/create#setup).

## Architecture

```
┌─────────────────────────────────────────────────────────┐
│                    XYZ Chain                            │
├─────────────────────────────────────────────────────────┤
│                                                         │
│   ┌─────────────────────────────────────────────────┐  │
│   │              x/wasm Module                       │  │
│   │                                                  │  │
│   │   ┌───────────┐  ┌───────────┐  ┌───────────┐   │  │
│   │   │  CW20     │  │  CW20     │  │  CW20     │   │  │
│   │   │  Token A  │  │  Token B  │  │  Token C  │   │  │
│   │   │ (MTK)     │  │ (USDC)    │  │ (TEST)    │   │  │
│   │   └───────────┘  └───────────┘  └───────────┘   │  │
│   │        │              │              │          │  │
│   │        └──────────────┼──────────────┘          │  │
│   │                       │                         │  │
│   │              CW20 Base Contract                 │  │
│   │                  (Code ID: 1)                   │  │
│   │                                                  │  │
│   └─────────────────────────────────────────────────┘  │
│                                                         │
└─────────────────────────────────────────────────────────┘
```

Each token is an **instance** of the CW20 base contract with unique:

* Contract address
* Name and symbol
* Balances
* Minter configuration

## Use Cases

<CardGroup cols={2}>
  <Card title="Governance Tokens" icon="landmark">
    Create tokens for DAO voting and governance
  </Card>

  <Card title="Stablecoins" icon="dollar-sign">
    Issue wrapped stablecoins on XYZ Chain
  </Card>

  <Card title="Reward Tokens" icon="gift">
    Distribute rewards to users
  </Card>

  <Card title="Utility Tokens" icon="bolt">
    Power in-app economies
  </Card>
</CardGroup>

## Next Steps

<CardGroup cols={2}>
  <Card title="Create Token" icon="plus" href="/tokens/create">
    Deploy your first CW20 token
  </Card>

  <Card title="Mint Tokens" icon="coins" href="/tokens/mint">
    Mint additional supply
  </Card>

  <Card title="Transfer" icon="arrow-right" href="/tokens/transfer">
    Send tokens to others
  </Card>

  <Card title="Query" icon="search" href="/tokens/query">
    Check balances and info
  </Card>
</CardGroup>