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TIP-20 is Tempo’s token standard that extends ERC-20 with protocol-level features for payments, compliance, and rewards distribution. All TIP-20 tokens use 6 decimals for microdollar precision.

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Key Features

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ERC-20 Compatibility

TIP-20 is fully compatible with ERC-20, implementing all standard functions:
  • transfer(address to, uint256 amount)
  • transferFrom(address from, address to, uint256 amount)
  • approve(address spender, uint256 amount)
  • balanceOf(address account)
  • totalSupply()
  • allowance(address owner, address spender)
TIP-20 also supports EIP-2612 permit functionality for gasless approvals via off-chain signatures (TIP-1004).

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Transfer Memos

TIP-20 extends transfers with optional on-chain memos for payment reconciliation:
  • transferWithMemo(address to, uint256 amount, bytes32 memo)
  • transferFromWithMemo(address from, address to, uint256 amount, bytes32 memo)
Memos are stored as 32-byte hashes on-chain, enabling:
  • Invoice reference tracking
  • Payment reconciliation
  • Multi-party transaction coordination
See Memos for details.

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Compliance Integration

TIP-20 tokens integrate with TIP-403 transfer policies for programmable compliance: 
// Token references a policy ID
uint64 public transferPolicyId;

// Transfers check authorization
if (!TIP403_REGISTRY.isAuthorizedSender(transferPolicyId, from)
    || !TIP403_REGISTRY.isAuthorizedRecipient(transferPolicyId, to)) {
    revert PolicyForbids();
}
Policies can implement:
  • Whitelist/blacklist controls
  • KYC/AML requirements
  • Geographic restrictions
  • Asymmetric sender/recipient rules (TIP-1015)
See Compliance for details.

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Reward Distribution

TIP-20 includes native support for distributing yield or rewards to token holders:
  • Holders opt-in by calling setRewardRecipient(address)
  • Rewards are distributed proportionally based on opted-in balances
  • Recipients can delegate rewards to a different address
  • claimRewards() transfers accrued rewards to the recipient
Reward accounting uses fixed-point arithmetic (1e18 precision) to track global and per-user reward rates without requiring iterations over all holders.

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Administrative Controls

TIP-20 tokens support role-based administration:
  • ISSUER_ROLE - Mint and burn tokens
  • PAUSE_ROLE / UNPAUSE_ROLE - Pause transfers
  • BURN_BLOCKED_ROLE - Burn from blocked addresses (TIP-1015)
  • BURN_AT_ROLE - Burn from any address (TIP-1006)
  • DEFAULT_ADMIN_ROLE - Manage roles and policies
Administrators can:
  • Set supply caps
  • Change transfer policies
  • Pause/unpause the token
  • Mint and burn tokens

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Token Metadata

Each TIP-20 token has: 
string public name;        // e.g., "Path USD"
string public symbol;      // e.g., "pathUSD"
string public currency;    // e.g., "USD" (for quote token routing)
uint8 public decimals;     // Always 6 (microdollar precision)
The currency field is used by the Stablecoin DEX for quote token routing and validation.

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Quote Tokens

TIP-20 tokens form a hierarchy via quote tokens: 
ITIP20 public quoteToken;      // Current quote token
ITIP20 public nextQuoteToken;  // Pending quote token (for migrations)
Quote tokens determine:
  • Trading pairs on the Stablecoin DEX
  • Cross-currency conversion paths
  • Token relationships for pricing
Administrators can propose a new quote token with setNextQuoteToken() and complete the migration with completeQuoteTokenUpdate() after ensuring no circular references.

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Gas Efficiency

TIP-20 is optimized for low-cost payments:
  • Transfer to existing address: ~50,000 gas (0.1 cent at baseline pricing)
  • Transfer to new address: ~300,000 gas (0.6 cent, includes state creation)
  • Transfer with memo: Adds ~5,000 gas for memo emission
See Transfers for gas cost details.

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Factory Deployment

TIP-20 tokens are deployed via the TIP20Factory precompile at address 0x20Fc000000000000000000000000000000000000: 
function createToken(
    string memory name,
    string memory symbol,
    string memory currency,
    ITIP20 quoteToken
) external returns (ITIP20)
The factory ensures:
  • Deterministic addresses
  • Consistent initialization
  • Proper role configuration
  • Integration with protocol precompiles

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Contract Address

All TIP-20 tokens are deployed with addresses in the range: 
0x20C0000000000000000000000000000000000000
to
0x20CFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF
This reserved address space enables:
  • Fast token detection
  • Protocol-level optimizations
  • Prevention of transfers to other TIP-20 contracts

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Standard Decimals

All TIP-20 tokens use 6 decimals for microdollar precision:
  • 1 token unit = 1 microdollar = 0.000001 USD
  • No need to query decimals for TIP-20 tokens
  • Consistent precision across all USD-denominated tokens
  • Simplified arithmetic and display logic
This differs from ERC-20’s variable decimals (often 18) but provides human-readable dollar amounts.
  • TIP-1000: State creation cost increases (affects transfer gas costs)
  • TIP-1004: Permit functionality (gasless approvals)
  • TIP-1006: burnAt function (privileged burning)
  • TIP-1015: Compound transfer policies (asymmetric compliance)
  • TIP-403: Transfer policy registry (compliance framework)

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Next Steps

Transfers

Learn about transfer methods and gas costs

Memos

Attach payment references to transfers

Compliance

Integrate with TIP-403 policies