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Presently, ERC20 tokens are seen as the gold standard of the Ethereum ecosystem due to their adaptability, usability, and easy development. As newbie startups are developing ERC20 tokens for various purposes in the crypto market, the demand for their creation has spiked.
Along with this, the myths about the cost of creating an ERC20 token have also spread widely. Hence, knowing the cost estimation is crucial before starting the ERC20 token development process. This blog breaks down the key cost components of ERC20 token development, helping startups and enterprises make informed decisions.
By the end, you’ll have a clear roadmap for budgeting your token creation process while maximizing efficiency and security.
Cost To Create An ERC20 Token – A Rough Estimation
Although the cost of creating an ERC20 token may differ depending on various factors, the rough estimation is around $10,000 to $15,000. As this is an approximate estimation, the price may vary depending on the ERC20 token’s use case, utilization, and business requirements.
When developing an ERC20 token, you have to know the cost factors that play a vital role in the development process.
Challenging Factors Of ERC20 Token Development Cost
Creating an ERC20 token will be a game-changer for new startups that want to raise funds through crowdfunding or decentralized ecosystem development. However, developing an ERC20 token comes with various challenges regarding cost estimation. We have mentioned some of the challenging cost factors of ERC20 token development.
Development Method
The foremost determining factor for ERC20 token creation cost is nothing but the choice of development method. These ERC20 tokens can be developed with the help of a token developer, or one can approach a crypto token development company. Compared with the cost factors, the freelance token developer may charge a high price, which would exceed the startup budget.
However, approaching a crypto token development company will cost around $10K – 15K which will fit the startup budget. The complete process from ideation to the marketing phase is done by the crypto token development company.
This is a primary cost-deciding factor that holds up to 47% of the overall ERC20 token development cost.
ERC20 Token Customizations
Crypto tokens are created for various business purposes, including crowdfunding, community building, providing access, digital payment solutions, etc. ERC20 token features have to be integrated based on the token utilization and use case. Hence, feature integration plays an important role in cost estimation. Too much of features lead to creating complex smart contracts for ERC20 tokens. Hence, this will play a big part in the cost estimation.
Feature Customization may hold nearly 12% of the overall cost of creating ERC20 tokens.
Quality Assurance
Rigorous testing and quality assurance is an integral part of creating an ERC20 token. ERC20 tokens are prone to technical vulnerabilities, bugs, and glitches. Hence, conducting multiple tiers of quality testing will ensure the functionality of the ERC20 tokens. By the testing phase, the real-world functionality of the ERC20 tokens is assured.
This will impact the overall cost estimation of ERC20 token development. The cost of testing depends on the tools, testing methods, and whether professional auditors are involved.
As a major cost-determining factor, Testing may hold up to 12% of the overall cost estimation.
Legal & Regulatory Compliance
Even though cryptocurrencies are widely accepted as a potential investment and for payments, many countries impose strict rules for their utilization. Hence, it is important to get through the specific region or jurisdiction to ensure the legal terms. Getting proper guidance from a legal team will help to avoid penalties and legal accusations.
For legal guidance, imposition of laws, and other regulatory norm enforcement may cost a certain amount.
The legal and regulatory compliance will cover nearly 7% of the total ERC20 token development cost.
Blockchain Network Fees
As ERC20 tokens are created on the Ethereum blockchain network fees, gas fees, gas optimization fees, etc. This depends on the smart contract coding, complexity, Ethereum network congestion, etc. Every transaction of these ERC20 tokens will charge gas fees. If your token includes additional functions like minting, burning, staking, governance, or automated rewards, it will require extra computational power, increasing gas fees.
The blockchain network fees play an important role, where 13% of the total ERC20 token development cost is taken.
Custom Standard Functionality
The ERC20 token development cost is impacted by customizing standard functionalities with complex features. The ERC20 token standard comes with basic functionalities like transfer, balanceof, approve, etc that are responsible for executing smooth transactions. Yet, for enhanced crypto business, additional standards are required to be customized. Integration of additional standards like minting, staking, burning, pausing, taxing, etc will lead to excessive cost estimation.
The standard functionality optimization plays a major role in the overall cost estimation by holding 9%.
These are the usual factors that determine the cost of creating an ERC20 token. Whether launching a utility token, governance token, or security token, smart cost-cutting measures will help maximize profits without compromising quality.
Some effective measures help startups minimize the crypto token development cost. We have enlisted them in the next section.
Effective Ways To Cut Down ERC20 Token Development Cost
With proper planning and market analysis, the ERC20 token development cost can be reduced.
Minimal Feature Integration
As the ERC20 token standard comes with essential features, add-on feature integration can be reduced to cut down the expenses. Minimal features require only a few steps of testing and quality assurance. Hence, both feature integration and testing costs are reduced. This also helps to reduce the Ethereum blockchain’s congestion fees. Reducing complex feature integration will allow developers to conduct smart contract audits and testing processes without any hassles.
Conduct In-House Testing
To cut down the maximum cost can be done through in-house testing. This is nothing but utilizing a testing environment, paid tools, etc will reduce the blunder technical errors. Through this, token malfunctions, technical vulnerabilities, etc can be found at the initial stage.
Utilization Of Tools
As the ERC20 tokens need higher quality assurance, utilizing various testing tools will help reduce the overall cost estimation. Various third-party services like Hardhat, Truffle, Ganache, etc, offer affordable testing services for the ERC20 token smart contracts.
Utilizing various testing environments will reduce the technical glitches before deployment. Testnet testing and smart contract auditing can be done either manually or with the tool setup.
Approach ERC20 Token Development Company
As mentioned earlier, the cost to create an ERC20 token is mainly determined by the choice of development method. Hiring a token developer may be affordable, but there are risks associated with that. Even experienced freelance token developers make technical mistakes that could affect the quality of the ERC20 token.
Hence, approaching a crypto token development company will be an ideal solution if you are new to the crypto landscape. As they would possess skilled developers, technicians, legal experts, and testers. Hence, the ERC20 can be created cost-effectively without any hassles.
If you are in search of a potential team to create ERC20 tokens, then Pixel Web Solutions is there for you!!
Pixel Web Solutions – Your Reliable Partner For Ethereum Token Development!
Pixel Web Solutions will be your go-to Ethereum token development company that crafts pixel-perfect ERC20 tokens with an innovative approach. Our crypto token development team ensures higher user satisfaction, security, and compassion by offering the token creation process at an affordable cost. With our cutting-edge technology, we customize the ERC20 tokens with top-notch scalability for a futuristic approach.
Our team assures to elevate your crypto business to the next level with our token development services. Along with ERC20 tokens, we also create various other token standards on multiple blockchain networks. We at, Pixel Web Solutions combine tech excellence with a client-first approach, ensuring every feature aligns perfectly with your vision and business goals.
Make a call to get the exact crypto token development cost!!
Frequently Asked Questions
Still stuck with queries, here we have answered!
Is It Necessary To Impose An ERC20 Token Smart Contract Audit And How Much Does It Cost?
Smart contract auditing is not a mandatory process yet it is important to ensure the token functionality and quality. The average cost to conduct manual auditing may range between $2500 to $2700. The cost may vary based on various factors like technician expertise, required tools, etc.
Does Additional Features Increase The Overall Cost Of Creating An ERC20 Token?
Yes, integrating additional features like staking, minting, governance, etc may cost high. Because these features require advanced-level coding, testing, and security checks that affects the overall cost estimation. Hence, avoiding this will ensure to creation of cost-effective ERC20 tokens.
How To Create An ERC20 Token?
The ERC20 tokens can be created with simple step-by-step that include ideation, market analysis, feature integration, smart contract coding, testing, batch-testing, and deployment. These ERC20 tokens are utilized for various crypto-based purposes like crowdfunding, utility tokens, rewards, and ecosystem building.
Disclaimer
The cost estimation that have mentioned in this blog is for informational purpose alone. It doesn’t represent our actual quotation. The above mentioned cost values are average and may vary based on your business needs, services, and project requirements. The details are not official cost or disclosures of Pixel Web Solutions. To get an accurate oor precise cost estimation, we encourage our users to connect with our business team!