If you've been hesitant to create ERC20 token on Ethereum due to high gas fees, Optimism offers an excellent alternative. As a Layer 2 scaling solution built on top of Ethereum, Optimism provides the same security guarantees as Ethereum mainnet but with dramatically lower costs and faster transaction speeds. In this guide, we'll walk you through the complete process of creating your token on Optimism.
The beauty of Optimism is that it's fully compatible with Ethereum's tooling and infrastructure. If you know how to deploy on Ethereum, you already know most of what you need for Optimism. The main difference? You'll save up to 90% on gas fees while enjoying near-instant transaction confirmations.
Why Choose Optimism for Token Deployment?
Before we dive into the technical details, let's talk about why Optimism has become such a popular choice for token creators and DeFi projects. The answer comes down to three main factors: cost, speed, and compatibility.
Cost Savings: This is the big one. Deploying a smart contract on Ethereum mainnet can easily cost $50-200 or more during peak times. On Optimism, that same deployment might cost just $5-10. For projects that need to deploy multiple contracts or perform frequent transactions, these savings add up quickly. When you create ERC20 token on Optimism, you're not just saving on deployment – every future transaction with your token will also be cheaper for your users.
Transaction Speed: Ethereum mainnet has a block time of about 12-15 seconds, and during congestion, your transaction might take several minutes to confirm. Optimism processes transactions in about 2 seconds. This makes for a much better user experience, especially for applications that require quick interactions like trading or gaming.
Ethereum Compatibility: Here's what makes Optimism special compared to other Layer 2 solutions – it's EVM-equivalent. This means you can use the exact same smart contracts, tools, and wallets that you use on Ethereum. Your Solidity code works without modifications. MetaMask, Remix, Hardhat – everything just works. You're not learning a new ecosystem; you're using Ethereum's ecosystem with better performance.
Security: Optimism inherits Ethereum's security through its optimistic rollup design. Your transactions are ultimately settled on Ethereum mainnet, giving you the same security guarantees. This is crucial for projects handling real value – you get Layer 2 speed and cost with Layer 1 security.
Growing Ecosystem: Major DeFi protocols like Uniswap, Aave, and Synthetix have deployed on Optimism. This means your token can immediately interact with established liquidity pools and lending markets. The network effect is real, and Optimism has it.
For developers and project founders, the choice is becoming clear. Unless you specifically need to be on Ethereum mainnet for maximum liquidity or specific integrations, Optimism offers a better experience for both you and your users. The Optimism token guide you're reading now will show you exactly how to take advantage of these benefits.
Preparing Your Wallet and Network Setup
Getting started with Optimism is straightforward, especially if you're already familiar with Ethereum. Let's set up everything you need step by step.
Adding Optimism to MetaMask: Open your MetaMask wallet and click on the network dropdown at the top. Select "Add Network" and then "Add a network manually". You'll need to enter these details:
- Network Name: Optimism
- RPC URL: https://mainnet.optimism.io
- Chain ID: 10
- Currency Symbol: ETH
- Block Explorer: https://optimistic.etherscan.io
Click "Save" and you're done. You should now see Optimism as an available network in your MetaMask. For testing purposes, you can also add Optimism Sepolia testnet using Chain ID 11155420 and RPC URL https://sepolia.optimism.io.
Getting ETH on Optimism: You'll need some ETH on Optimism to pay for gas fees. There are two main ways to get it. The first is bridging from Ethereum mainnet using the official Optimism Bridge at app.optimism.io/bridge. This is secure but takes about 7 days to withdraw back to mainnet (deposits are quick though).
The faster option is using a third-party bridge like Hop Protocol or Across Protocol. These bridges are faster for withdrawals but charge a small fee. For small amounts, you can also use centralized exchanges – many exchanges like Coinbase and Binance support direct withdrawals to Optimism, which is often the cheapest and fastest method.
If you're just testing, use the Optimism Sepolia testnet faucet. Search for "Optimism Sepolia faucet" and you'll find several options that give you free test ETH. This lets you practice the entire deployment process without spending real money.
Configuring Remix IDE: Open Remix at remix.ethereum.org. The interface is the same whether you're deploying to Ethereum or Optimism – that's the beauty of EVM compatibility. Create a new workspace or use the default one. Make sure your MetaMask is connected to Remix by clicking the "Deploy & Run Transactions" tab and selecting "Injected Provider - MetaMask" as your environment.
Checking Network Connection: Before proceeding, verify that MetaMask is connected to the correct network. Look at the top of your MetaMask extension – it should say "Optimism" or "Optimism Sepolia" depending on which network you're using. This is crucial because if you're on the wrong network, your deployment will fail or go to the wrong chain.
One helpful tip: bookmark the Optimism block explorer (Optimistic Etherscan) at optimistic.etherscan.io. You'll be using this frequently to check transactions, verify contracts, and monitor your token. It works exactly like regular Etherscan but for the Optimism network.
Writing and Deploying the Contract via Remix
Now for the exciting part – actually creating your token. The process is nearly identical to deploying on Ethereum, which is one of Optimism's greatest strengths. If you've deployed on Ethereum before, this will feel very familiar.
Create a new file in Remix called "OptimismToken.sol". Here's a solid ERC20 contract that works perfectly on Optimism:
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.20;
contract OptimismToken {
string public name;
string public symbol;
uint8 public decimals = 18;
uint256 public totalSupply;
mapping(address => uint256) public balanceOf;
mapping(address => mapping(address => uint256)) public allowance;
event Transfer(address indexed from, address indexed to, uint256 value);
event Approval(address indexed owner, address indexed spender, uint256 value);
constructor(string memory _name, string memory _symbol, uint256 _initialSupply) {
name = _name;
symbol = _symbol;
totalSupply = _initialSupply * 10 ** uint256(decimals);
balanceOf[msg.sender] = totalSupply;
emit Transfer(address(0), msg.sender, totalSupply);
}
function transfer(address _to, uint256 _value) public returns (bool success) {
require(balanceOf[msg.sender] >= _value, "Insufficient balance");
require(_to != address(0), "Invalid address");
balanceOf[msg.sender] -= _value;
balanceOf[_to] += _value;
emit Transfer(msg.sender, _to, _value);
return true;
}
function approve(address _spender, uint256 _value) public returns (bool success) {
allowance[msg.sender][_spender] = _value;
emit Approval(msg.sender, _spender, _value);
return true;
}
function transferFrom(address _from, address _to, uint256 _value) public returns (bool success) {
require(_value <= balanceOf[_from], "Insufficient balance");
require(_value <= allowance[_from][msg.sender], "Allowance exceeded");
require(_to != address(0), "Invalid address");
balanceOf[_from] -= _value;
balanceOf[_to] += _value;
allowance[_from][msg.sender] -= _value;
emit Transfer(_from, _to, _value);
return true;
}
}
This contract is clean, efficient, and follows best practices. Notice that we've made the name and symbol configurable through constructor parameters, which gives you more flexibility. The contract includes all the standard ERC20 functions that wallets and exchanges expect.
To compile, click on the "Solidity Compiler" tab in Remix. Select compiler version 0.8.20 or higher, then click "Compile OptimismToken.sol". You should see a green checkmark indicating successful compilation. If you see any errors, double-check that you've copied the code correctly.
Now for deployment. Switch to the "Deploy & Run Transactions" tab. Make sure "Injected Provider - MetaMask" is selected as your environment, and verify that MetaMask shows you're connected to Optimism (or Optimism Sepolia for testing).
Before clicking deploy, you need to provide the constructor parameters. You'll see input fields for name, symbol, and initial supply. For example, you might enter "My Optimism Token", "MOT", and "1000000" for one million tokens. Remember that the initial supply will be multiplied by 10^18 in the contract, so entering 1000000 will actually create 1,000,000 tokens with 18 decimal places.
Click "Deploy" and MetaMask will pop up asking you to confirm the transaction. Here's where you'll see the first major difference from Ethereum – the gas fee will be dramatically lower. On Ethereum, you might see $50-100 for deployment. On Optimism, you'll likely see $5-15. Confirm the transaction.
Within seconds, your contract will be deployed. You'll see it appear in the "Deployed Contracts" section of Remix. Click on the contract address to copy it – you'll need this for the next steps. Congratulations, you've just deployed your token on Optimism!
Bridging Tokens Between Ethereum and Optimism
One powerful feature of Optimism is the ability to bridge tokens between Layer 1 (Ethereum) and Layer 2 (Optimism). While your token is native to Optimism, understanding bridging is important for interoperability and liquidity.
The official Optimism Bridge uses a standard called the "Standard Bridge" which allows tokens to move between chains. However, bridging your custom token requires some additional setup. You need to deploy a corresponding token contract on Ethereum that's linked to your Optimism token.
For most projects, especially those just starting out, it's simpler to keep your token native to Optimism. Users can bridge ETH to Optimism to interact with your token, which is straightforward and well-supported. If you later need full bridging support, you can implement it using Optimism's token bridge contracts.
If you do want to enable bridging, you'll need to deploy a "L1 token" on Ethereum and register it with the Optimism bridge. This involves deploying a contract on Ethereum mainnet (which will cost more in gas fees) and calling the bridge's registration functions. The Optimism documentation provides detailed guides for this process.
For most use cases, having your token live entirely on Optimism is perfectly fine. Users can bridge ETH to Optimism, buy your token on Optimism-based DEXes like Uniswap or Velodrome, and use it within the Optimism ecosystem. This is actually the recommended approach for new projects – it keeps things simple and takes full advantage of Optimism's low fees.
Verifying the Contract
Just like on Ethereum, verifying your contract on the block explorer is crucial for transparency and trust. The process on Optimism is nearly identical to Ethereum, using Optimistic Etherscan.
Go to optimistic.etherscan.io and paste your contract address in the search bar. You'll see your contract, but the code won't be visible yet. Click on the "Contract" tab, then "Verify and Publish".
Select "Solidity (Single file)" as the verification method. Choose the compiler version you used in Remix (0.8.20 in our example). For optimization, select "Yes" if you enabled it in Remix, or "No" if you didn't. Most people leave optimization disabled for simple contracts.
Copy your entire Solidity source code from Remix and paste it into the text box. If you used constructor arguments (which we did for name, symbol, and initial supply), you'll need to provide them in ABI-encoded format. Optimistic Etherscan has a helper tool for this, or you can get the encoded data from your deployment transaction in Remix.
Click "Verify and Publish" and wait a moment. If successful, you'll see a green checkmark and your source code will now be publicly visible. Anyone can now read your contract code, which is essential for building trust in the crypto community. Verified contracts also get a green checkmark badge on Optimistic Etherscan, signaling legitimacy.
One tip: if verification fails, double-check that you're using the exact same compiler version and settings. Even small differences will cause verification to fail. Also make sure you're including any imported libraries in your source code.
Comparing Gas Fees
Let's talk numbers, because this is where Optimism really shines. The difference in gas costs between Ethereum and Optimism is substantial and can make or break a project's economics.
Contract Deployment: On Ethereum mainnet during moderate network activity, deploying an ERC20 contract typically costs 0.02-0.05 ETH ($40-100 at current prices). On Optimism, the same deployment costs about 0.002-0.005 ETH ($4-10). That's roughly 90% savings right there.
Token Transfers: A simple ERC20 transfer on Ethereum costs around 0.001-0.003 ETH ($2-6) during normal times, and can spike much higher during congestion. On Optimism, transfers cost about 0.0001-0.0003 ETH ($0.20-0.60). For projects with high transaction volumes, this difference is massive.
Complex Interactions: If your token includes additional features like staking, burning, or governance, the gas savings become even more pronounced. A complex transaction that might cost $20-50 on Ethereum could cost just $2-5 on Optimism.
User Experience Impact: These lower fees don't just save you money during deployment – they make your token more accessible to users. When someone can transfer tokens for $0.50 instead of $5, they're much more likely to actually use your token. This is especially important for community tokens, gaming tokens, or any use case involving frequent small transactions.
Long-term Sustainability: For projects planning to be active for years, the cumulative savings are enormous. If your project involves regular token distributions, rewards, or other automated transactions, doing this on Optimism instead of Ethereum could save tens of thousands of dollars over time.
The low gas ERC20 tokens on Optimism also enable use cases that simply aren't economically viable on Ethereum mainnet. Microtransactions, frequent rewards, gaming economies – these all become practical on Optimism in ways they aren't on Layer 1.
Best Practices for Optimism Token Development
Now that you know how to create ERC20 token on Optimism, let's cover some best practices that will help your project succeed.
Start on Testnet: Always deploy to Optimism Sepolia testnet first. Test all your token's functions thoroughly before moving to mainnet. This includes transfers, approvals, and any custom features you've added. The testnet is free, so there's no reason not to test extensively.
Keep Contracts Simple: The simpler your contract, the lower the gas costs and the easier it is to audit. Unless you need specific features, stick with the standard ERC20 implementation. You can always deploy upgraded versions later if needed.
Plan for Liquidity: Think about where users will trade your token. Optimism has several DEXes including Uniswap V3, Velodrome, and others. You'll likely want to create a liquidity pool for your token. Budget for this – you'll need both your token and ETH to create a pool.
Consider Token Economics: Low gas fees on Optimism enable different tokenomics models than Ethereum. You can afford to do more frequent distributions, smaller rewards, or more complex staking mechanisms. Design your tokenomics with Optimism's advantages in mind.
Monitor Gas Prices: While Optimism is generally cheap, gas prices can still vary. Use tools like Optimistic Etherscan's gas tracker to find the best times for large operations. Though honestly, even "expensive" times on Optimism are cheaper than cheap times on Ethereum.
Security First: Just because deployment is cheaper doesn't mean you should skip security considerations. If your token will hold significant value, get it audited. Use established libraries like OpenZeppelin when possible. Test thoroughly before launch.
Ready to Launch Your Optimism Token?
You now have all the knowledge you need to create and deploy an ERC20 token on Optimism. We've covered why Optimism is an excellent choice for token deployment, how to set up your environment, the complete deployment process, contract verification, and the significant cost savings you'll enjoy.
The Optimism token guide you've just read gives you the foundation to build on Layer 2 with confidence. Whether you're creating a token for a DeFi protocol, a community project, a gaming economy, or any other use case, Optimism provides the perfect balance of low costs, high speed, and Ethereum compatibility.
Remember that while this guide shows you the technical process, successful token projects require more than just deployment. You need a clear use case, strong tokenomics, community building, and ongoing development. The low gas fees on Optimism give you more resources to invest in these crucial areas instead of burning money on transaction costs.
The Easier Way to Create Your Optimism Token
While this guide has walked you through the manual process of creating an ERC20 token on Optimism, there's a much simpler way to get started. If you want to skip the technical complexity and launch your token in minutes, our platform makes it effortless.
At ERC20 Token Creator, we've built an intuitive ERC20 token generator that handles all the technical details for you. No coding required, no complex setup – just choose your token parameters and deploy to Optimism with a few clicks.
Our platform supports deployment to Optimism, Ethereum, and Base, giving you flexibility to choose the best network for your needs. Whether you need a simple standard token or advanced features like staking rewards and auto-liquidity, we've got templates ready to go. Visit www.erc20tokencreator.net today and create your Optimism token in minutes instead of hours!