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Ethereum / Guide

Token allowances are standing permissions

Separate a wallet connection from the authority to move ERC-20 tokens on your behalf.

Ethereum conceptual editorial illustration for Token allowances are standing permissions
Conceptual editorial illustration, not a photograph or measurement of an event.
THE TAKEAWAY

Review the token, spender, chain and amount; disconnecting a website is not the same as removing an allowance.

Connection is not spending authority

Connecting a wallet generally lets an application discover an address and request actions. An ERC-20 allowance is a separate permission recorded by the token contract for a specified spender. That spender can use the token's delegated transfer mechanism within the allowance and available balance. Closing the browser or disconnecting the site does not by itself alter the token contract's stored permission.

Compare two approvals

Suppose an application needs 40 units for one operation. An allowance of 40 and an allowance of one million may both enable that operation, but leave very different residual exposure. After spending 40 under a conventional allowance model, the smaller permission may be exhausted while the larger one remains substantial. Token implementations and permit systems can vary, so inspect the actual request instead of assuming every approval screen has identical semantics.

Identify the recipient of authority

The spender address matters more than a website's display name. A familiar logo can appear beside an unrelated contract, and a protocol may use different contracts on different chains. Compare the chain and spender against authoritative deployment information reached independently. An approval should also be distinguished from a direct transfer, an NFT operator permission and a signed message that can authorise later token movement. A zero network fee does not necessarily mean a signature is harmless.

Review the permission lifecycle

Keep a short record of why a permission exists and when it is no longer needed. Reducing or revoking an allowance usually requires an on-chain update, which must itself succeed before the new state applies. It cannot recover assets already transferred. Ask whether the application needs persistent access, whether a narrower amount works and how the spender can change over time. Permission review is one layer of risk management, not evidence that the underlying contract or token is trustworthy.

READ THE ORIGINAL EVIDENCE

Sources & context

  1. ERC-20 standard: approve, allowance and transferFrom ↗
  2. Ethereum Foundation: clear signing ↗

Sources checked 7 October 2026. This is explanatory coverage, not personalised investment advice. Our corrections policy.

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