Token Factory Module

Source: paxeer-network/modules/tokenfactory/

Overview

The tokenfactory module allows any account to create new native tokens. Tokens are namespaced by creator address as factory/{creator address}/{subdenom}, eliminating name collisions. A single account can create multiple denoms by providing unique subdenoms.

The original creator is granted admin privileges over the token, allowing them to mint, burn, transfer, and change admin.

Token Naming

Tokenfactory denoms follow the format:

factory/{creator_address}/{subdenom}

Example:

factory/pax166vhptur29s3gw5qr6dm30s06gej6pr4zevkqk/ufoo

Prefix: Always factory (7 bytes)
Creator address: Bech32 address (max 75 bytes)
Subdenom: User-defined (max 44 bytes, [a-zA-Z0-9./])

Total denom length must not exceed 128 bytes (Cosmos SDK constraint).

Messages

CreateDenom

Create a new denom:

message MsgCreateDenom {
    string sender = 1;
    string subdenom = 2;
}

CLI:

paxd tx tokenfactory create-denom ufoo --from mylocalwallet

State modifications:

Set DenomMetadata via bank keeper
Set AuthorityMetadata with sender as admin
Add denom to CreatorPrefixStore

Mint

Mint tokens (admin only):

message MsgMint {
    string sender = 1;
    cosmos.base.v1beta1.Coin amount = 2;
}

CLI:

paxd tx tokenfactory mint 100000000000factory/pax166vh.../ufoo --from mylocalwallet

Checks:

Denom was created via tokenfactory
Sender is the admin

Mints the specified amount via the bank module.

Burn

Burn tokens (admin only):

message MsgBurn {
    string sender = 1;
    cosmos.base.v1beta1.Coin amount = 2;
}

Checks:

Denom was created via tokenfactory
Sender is the admin

Burns the specified amount via the bank module.

ChangeAdmin

Transfer admin privileges:

message MsgChangeAdmin {
    string sender = 1;
    string denom = 2;
    string newAdmin = 3;
}

The sender must be the current admin. Set newAdmin to "" to renounce admin privileges (irreversible).

Admin Capabilities

The admin can:

Mint: Create new tokens of the denom
Burn: Destroy tokens from any account
Force Transfer: Move tokens between any two accounts
Change Admin: Transfer or renounce admin rights

Admins can share privileges via the authz module without changing the master admin.

Queries

Denom Metadata

paxd query bank denom-metadata --denom factory/pax166vh.../ufoo

Denoms by Creator

paxd query tokenfactory denoms-from-creator pax166vhptur29s3gw5qr6dm30s06gej6pr4zevkqk

Restrictions

To fit within the 128-byte Cosmos SDK denom limit:

Max subdenom length: 44 characters
Max creator address length: 75 characters (bech32 prefix ≤ 16 chars)

Calculation:

len("factory") + 2*len("/") + len(creator_address) + len(subdenom) ≤ 128
7 + 2 + 75 + 44 = 128

Use Cases

Wrapped assets: Mint tokens representing off-chain assets
Synthetic tokens: Create tokens backed by other on-chain assets
Protocol-managed denoms: Modules create denoms for internal accounting
Governance tokens: DAOs issue native governance tokens

Integration with Bank Module

Tokenfactory denoms are native tokens, not ERC-20 contracts. They integrate with the bank module for:

Balance queries
Transfers via MsgSend
IBC transfers
Distribution to stakers

EVM Integration

Tokenfactory denoms can be exposed to EVM contracts via pointer precompiles, allowing ERC-20-style interaction from Solidity.

Next Steps

Store Module

Precompiles