Edit tokens docs per review

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mDuo13
2025-09-25 14:40:13 -07:00
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3 changed files with 10 additions and 6 deletions

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@@ -45,14 +45,18 @@ Some notable features and their status:
| Issuing and direct payments | {% amendment-disclaimer name="MPTokensV1" compact=true /%} |
| Escrow | {% amendment-disclaimer name="TokenEscrow" compact=true /%} (implements escrow for both trust line tokens and MPTs) |
| Mutable token properties | In development: [XLS-94](https://github.com/XRPLF/XRPL-Standards/tree/master/XLS-0094-dynamic-MPT) |
| Confidentiality | Proposed: [XLS-??](https://github.com/XRPLF/XRPL-Standards/discussions/372) |
| Confidentiality | [Proposed XLS](https://github.com/XRPLF/XRPL-Standards/discussions/372) |
| Decentralized exchange (DEX), trading, cross-currency payments, and AMM compatibility | Expected future work |
## Which Fungible Token Type to Use
If you are creating a new token on the XRP Ledger, it may be confusing that there are two standards to choose from with different properties and strengths. If you aren't sure which one to use, the following summary should help you decide:
- If you need **compatibility with the DEX** or your use case is **community credit**, choose trust line tokens.
- For most cases, especially new tokens, MPTs are usually preferred.
- For most new tokens, MPTs are preferred.
- Specific cases where you might prefer trust line tokens include:
- If you need **compatibility with the DEX**. <!-- Note: revisit this when MPT DEX compatibility is closer to being available. -->
- Your use case is **community credit**.
- You need compatibility with legacy software, such as an integration that already works with trust line tokens.
- You need to be able to represent very large and very small quantities of the same token (20 orders of magnitude apart).
There are other strengths and weaknesses of each format, such as trust line tokens' ability to represent very large and very small quantities of the same token (greater than 63 orders of magnitude apart), or compatibility with legacy software.
This is not an exhaustive list of strengths and weaknesses of each format. If you aren't sure, you can read more about the specific properties of [trust line tokens](trust-line-tokens.md) and [MPTs](multi-purpose-tokens.md) before making a decision.

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@@ -27,7 +27,7 @@ Unlike trust line tokens, each MPT issuance is uniquely identified by an **MPT I
## Key Features of MPTs on XRPL
MPTs are designed decentralized finance, so they are ready to go with settings and features for institutional use cases:
MPTs are designed for decentralized finance, so they are ready to go with settings and features for institutional use cases:
- **On-Chain Metadata:** Each MPT issuance has key properties defined on the ledger, so everyone can look up its data on-chain and the ledger's transaction engine can automatically enforce specific rules. Since MPT settings are defined per issuance, you don't have to set up separate accounts to issue tokens with different settings, which also helps minimize your exposure to cyberattacks.
- **Transferability controls:** MPTs can be made non-transferable, or holdable only by approved users.

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@@ -56,7 +56,7 @@ In addition to the shared balance, each account has its own settings on the trus
Unlike XRP or MPTs, trust line tokens always exist in _trust lines_, and all transfers move along trust lines. You cannot cause someone else's account to hold more of a token than the _limit_ configured on their trust line. (You _can_ cause your own trust line to go over the limit, for example by buying more of it in the decentralized exchange or by decreasing the limit after you already have a positive balance.)
Anyone can issue trust line tokens by sending a [Payment transaction][] if the necessary trust lines are in place. You can "burn" tokens by sending them back to the issuer. In some cases, cross-currency payments or trades can also create more tokens according to an issuer's settings.
Anyone can issue trust line tokens by sending a [Payment transaction][] if the necessary trust lines are in place. You can _burn_ (destroy) tokens by sending them back to the issuer. In some cases, cross-currency payments or trades can also create more tokens according to an issuer's settings.
Issuers have options with tokens that are not available with XRP. Issuers can charge a [transfer fee](transfer-fees.md) that is automatically deducted when users transfer their tokens. Issuers can also define a [tick size](../decentralized-exchange/ticksize.md) for exchanges rates involving their tokens. Both issuers and regular accounts can [freeze](freezes.md) trust lines, which limits how the tokens in those trust lines can be used.