What Are Token Accounts on Solana? Everything You Need to Know

On Solana, every token you hold is stored in a separate account called a token account (also known as an Associated Token Account or ATA). Unlike Ethereum where a single wallet can hold many different ERC-20 tokens in one account, Solana uses a dedicated account for each token type.

When you buy a token for the first time, Solana automatically creates a token account for that specific token in your wallet. This account requires a rent-exempt deposit of approximately 0.00204 SOL to stay on the blockchain.

This rent-exempt deposit is not a fee -- it's more like a refundable security deposit. The SOL is locked in the account to pay for the storage space on the Solana blockchain. As long as the account exists, this SOL remains locked.

The important thing to understand is that when you sell all of a token, the token account is NOT automatically closed. It remains open with a zero balance, and the rent-exempt SOL stays locked. This is why active Solana traders often have dozens or hundreds of empty token accounts.

To recover the locked SOL, you need to explicitly close these empty token accounts. This sends a 'close account' instruction to the Solana blockchain, which deletes the account and returns the rent deposit to your wallet. Tools like SolWipe make this process simple and automatic.

Each empty token account locks approximately 0.00204 SOL. If you have 100 empty accounts (not uncommon for active traders), that's about 0.204 SOL locked up. With SolWipe, you can close all of them in a single transaction and recover your SOL in seconds.