Scaled UI Amount

What is the Scaled UI Amount extension?

The scaled UI amount extension allows issuers to apply an updatable multiplier to the UI amount of a token. This is useful for scenarios where the token is used to represent a real-world asset, such as a stock or dividend.

For example, a stock split doubles the number of shares for all holders. Without this extension, it is currently impractical to mint new tokens to all holders during a split event in an efficient and scalable way.

With the Token-2022 extension model, however, we have the possibility to change how the UI amount of tokens are represented. Using the ScaledUiAmount extension and the amount_to_ui_amount instruction, you can set a UI multiplier on your token and fetch its UI amount at any time. source code.

This feature can also be used for dividends or distributing yield.

Note: No new tokens are ever created, the UI amount returns the raw amount of tokens multiplied by the current multiplier. The feature is entirely cosmetic.