Token Creation on Ethereum: A Complete Guide

Understanding Tokens

Tokens are digital currencies created using Ethereum's smart contract technology. By writing smart contract code, developers can design new cryptocurrencies with customizable features.

Core Capabilities

Basic Functions:

• Create a digital currency with configurable parameters (name, total supply, icon)
• Enable token transfers between users

Advanced Features:

• Implement administrative controls for contract management
• Create whitelist/blacklist systems for account freezing
• Enable token minting (inflation control)
• Design mining reward mechanisms
• Establish automated token exchange systems
• Develop gas fee automation for ETH-less users

Implementing Basic Token Functions

Here's a simplified smart contract for token creation and transfers:

contract MyToken {
    mapping (address => uint256) public balanceOf;
    string public name;
    string public symbol;
    uint8 public decimals;
    
    event Transfer(address indexed from, address indexed to, uint256 value);
    
    function MyToken(uint256 initialSupply, string tokenName, uint8 decimalUnits, string tokenSymbol) {
        balanceOf[msg.sender] = initialSupply;
        name = tokenName;
        symbol = tokenSymbol;
        decimals = decimalUnits;
    }
    
    function transfer(address _to, uint256 _value) {
        if (balanceOf[msg.sender] < _value || balanceOf[_to] + _value < balanceOf[_to]) throw;
        balanceOf[msg.sender] -= _value;
        balanceOf[_to] += _value;
        Transfer(msg.sender, _to, _value);
    }
}

Deployment via Mist Wallet

1. Navigate to "CONTRACTS" > "DEPLOY NEW CONTRACT"
2. Paste contract code
3. Select "MyToken" from dropdown

4. Configure parameters:

   • Initial supply (token quantity)
   • Token name
   • Decimal units
   • Token symbol
5. Click "DEPLOY"

👉 Learn more about Ethereum wallet deployment

Advanced Function Implementation

Enhanced contract with administrative controls:

contract owned {
    address public owner;
    function owned() { owner = msg.sender; }
    modifier onlyOwner { if (msg.sender != owner) throw; _ }
    function transferOwnership(address newOwner) onlyOwner { owner = newOwner; }
}

contract MyToken is owned {
    string public standard = 'Token 0.1';
    string public name;
    string public symbol;
    uint8 public decimals;
    uint256 public totalSupply;
    mapping (address => uint256) public balanceOf;
    mapping (address => bool) public frozenAccount;
    
    event Transfer(address indexed from, address indexed to, uint256 value);
    event FrozenFunds(address target, bool frozen);
    
    function MyToken(uint256 initialSupply, string tokenName, uint8 decimalUnits, string tokenSymbol, address centralMinter) {
        if(centralMinter != 0 ) owner = msg.sender;
        balanceOf[msg.sender] = initialSupply;
        totalSupply = initialSupply;
        name = tokenName;
        symbol = tokenSymbol;
        decimals = decimalUnits;
    }
    
    function transfer(address _to, uint256 _value) {
        if (frozenAccount[msg.sender]) throw;
        if (balanceOf[msg.sender] < _value) throw;
        if (balanceOf[_to] + _value < balanceOf[_to]) throw;
        if(msg.sender.balance < minBalanceForAccounts) throw;
        balanceOf[msg.sender] -= _value;
        balanceOf[_to] += _value;
        Transfer(msg.sender, _to, _value);
    }
}

Key Features Added:

1. Contract ownership system
2. Account freezing capability
3. Minimum balance requirements
4. Enhanced error checking

👉 Discover advanced token economics

FAQ Section

Q: What's the minimum ETH needed to deploy a token?
A: Gas costs vary by network conditions, but testnets allow free deployment with test ETH.

Q: Can token contracts be modified after deployment?
A: No - deployed contracts are immutable by design. Always test thoroughly on testnets first.

Q: How do users view their token balances?
A: Through wallet interfaces by watching the token contract address.

Q: What's the practical use of token minting?
A: It enables controlled inflation for reward systems or ecosystem growth.

Q: Is coding experience required to create tokens?
A: Basic programming knowledge helps, but many templates exist for simple implementations.

Q: How are token transaction fees determined?
A: Fees are paid in ETH (gas) and vary by network demand, not token value.