Academy · Lesson 8
Token approvals and smart-contract permissions
Understand spending approvals, unlimited allowances, and why a wallet signature can carry risk.
All lessons7 minutes · On-chain safety
An approval grants authority
A token approval can authorize a contract to transfer tokens later. An unlimited allowance may remain useful to an application, but it also expands loss if that contract or interface is compromised.
Review before signing
Read the wallet's action type, contract, network, token, and allowance. Reject unexpected signature requests and periodically review permissions using a reputable explorer or wallet tool.
- Prefer the smallest practical allowance.
- Do not sign to receive an unsolicited prize.
- Revoking an allowance is an on-chain transaction and may require a fee.
Ready for the knowledge check?
Sign in to the member Academy. First-time perfect completions can receive the currently configured fixed reward; reading alone never creates a financial entry.