# STX20

### What Is STX20?

**STX20** is a lightweight token standard for the **Stacks blockchain**, enabling fungible token creation via **inscriptions in the memo field** of STX transactions—no smart contracts required. Inspired by Bitcoin minimalism and Ordinals logic, it offers a **gas-efficient, decentralized** way to deploy, mint, and transfer tokens.

Especially relevant with the upcoming **Nakamoto upgrade**, STX20 aligns perfectly with Stacks’ push toward faster finality and deeper Bitcoin integration.

#### 🔧 How STX20 Works

STX20 encodes simple actions (deploy, mint, transfer) in the **34-character memo** field of STX transactions.\
Off-chain **indexers** read these memos and determine token state using deterministic rules.

**No contracts, no gas logic — just on-chain data.**

**Example Formats:**

* **Deploy**: `{operation}{ticker}{total_supply};{limit_per_mint}`
* **Mint**: `{operation}{ticker}{amount}`
* **Transfer**: `{operation}{ticker}{amount}`

#### 💡 Key Features

* **No smart contract needed** — pure on-chain data
* **Ultra-lightweight** — fits within memo field
* **Minimal fees** — even 0.000001 STX is enough
* **Immutable** — all inscriptions permanently recorded

#### 🧱 Origin of STX20 Tokens

Tokens are deployed by sending a minimal STX transaction with a deploy memo specifying:

* **Ticker** (3–8 uppercase letters)
* **Total supply**
* **Per-mint limit**

After deployment, users can mint or transfer using the same memo logic. No token logic lives in smart contracts — the entire system runs on chain data and indexer interpretation.


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