> For the complete documentation index, see [llms.txt](https://docs.watt.si/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.watt.si/the-protocol/watt-assets/watt-token-specification.md).

# Watt token specification

What are Watt assets from technical perspective? 

* Watt assets are SPL tokens utilizing the **Token-2022** transfer fee extension.
* Each token includes a built-in fee structure (see the [Fee structure](/the-protocol/fee-structure.md) section for more information).
* Only traditional SPL tokens without extensions can be wrapped.
* Wrapping **mints** new Watt tokens.
* Unwrapping **burns** existing Watt tokens.
* Yield accrues via the **burning** of Watt assets. This mechanism increases the ratio of original tokens to Watt tokens during wrap and unwrap actions (see [Token ratio](/the-protocol/watt-assets/token-ratio.md) section).