Fungible Tokens

The CW20 standard defines a fungible token interface for smart contracts in the CosmWasm ecosystem, similar to Ethereum’s ERC-20. On XION, you can deploy your own CW20 contracts or use the built-in Token Factory module to create native tokens without writing custom logic.

This guide explains when and how to deploy CW20 token contracts using production-ready implementations from the cw-plus and cw-tokens repositories.

Reusing these contracts without modification may reduce or eliminate the need for a security audit before deploying to XION Mainnet.

When to use CW20 Contracts vs Token Factory

Use Case	Use CW20 Contract	Use Token Factory
Need custom logic (e.g., bonding, vesting)	Yes	No
Just need a simple native token	No	Yes
Allows for transferring tokens across chain via IBC	No (Requires cw20-ics20 contract)	Yes

If you're just minting a governance or utility token with no special rules, use Token Factory. If you need full control and customization, go with CW20 contracts. See the following Token Factory guide for more details.

Available CW20 Contract Variants

1. cw20-base

Standard CW20 implementation with all basic functionality.

Features:

• Minting and burning

• Transfer and allowance logic

• Query total supply, balances

📦 Repo: cw20-base

Ideal for:

• Standalone utility tokens

• Basic reward and governance tokens

2. cw20-ics20

Wraps a CW20 token to be compatible with IBC (Interchain Standard 20).

Features:

• Builds on cw20-base

• Adds IBC packet handling for token transfers across Cosmos chains

📦 Repo: cw20-ics20

Ideal for:

• Interchain assets

• Dapps that rely on token bridging

3. cw20-bonding

CW20 token with bonding curve logic for dynamic token pricing.

Features:

• Automatic pricing based on supply

• Mint/burn tokens via bonding curve

• Customizable curve function

📦 Repo: cw20-bonding

Ideal for:

• Fundraising dapps

• Creator economy tokens

• Algorithmic supply control

4. cw20-atomic-swap

Implements atomic swaps between native and CW20 tokens in a trust-minimized way. Features:

• Supports atomic swaps between native tokens and CW20 tokens

• Time-locked contracts ensure either party can claim or refund

• Hash-based secret verification (HTLC-style)

Ideal for: Cross-party token swaps without intermediaries, simple DEX-like functionality 📦 Repo: cw20-atomic-swap

5. cw20-staking

Provides staking derivatives by staking native tokens and issuing CW20 representations. Features:

• Stakes native tokens on behalf of the user

• Issues CW20 tokens as liquid staking derivatives

• Integrates with the staking module for rewards

• Based on cw20-base

Ideal for: Liquid staking solutions, DeFi integrations, enabling composability of staked assets 📦 Repo: cw20-staking

6. cw20-escrow

A simple escrow contract compatible with both native and CW20 tokens. Features:

• Funds are held until an arbiter approves release or refund

• Supports multiple token types (CW20 and native)

• Basic access control for disbursement

Ideal for: Trust-minimized payments, freelance work, over-the-counter trades 📦 Repo: cw20-escrow

7. cw20-merkle-airdrop

Efficient CW20 token airdrop mechanism using Merkle proofs. Features:

• Airdrop claim eligibility via Merkle root verification

• Reduces gas cost for mass distribution

• Claim tracking to prevent double claims

Ideal for: Token launches, community rewards, incentivized campaigns 📦 Repo: cw20-merkle-airdrop