REVOKING TOKEN APPROVALS: A COMPLETE USER GUIDE

Understanding Token Approvals in Crypto Wallets

Token approvals are a fundamental aspect of interacting with decentralised applications (dApps) on blockchain networks, especially Ethereum and other EVM-compatible chains. When users grant a dApp or smart contract 'approval', they authorise it to access and move tokens on their behalf, often without needing future confirmation.

This approval is typically required for trading tokens, using DeFi services, or interacting with Web3 games. The approval mechanism uses the approve() function in the ERC-20 (or other token) standard, where a user specifies which third-party address can access how many tokens from their wallet.

Why Approvals Are Needed

Approvals aim to improve blockchain UX by reducing the number of transactions a user must confirm. After approval, the dApp can execute token transfers seamlessly, saving time and gas fees. However, this convenience introduces security concerns.

The Risks of Unlimited Token Approvals

Most token approvals are set to 'unlimited', meaning the dApp or smart contract can access all existing and future tokens without restrictions. While this offers efficiency, it poses significant risks if:

• The smart contract has vulnerabilities or gets exploited
• The dApp team turns malicious or loses control of the protocol
• Users forget old approvals, leaving access open indefinitely

In practice, if a dApp’s backend becomes compromised, malicious actors could use the open approval to drain funds. Hence, regular review and revocation of token approvals has become a crucial security practice.

Blockchain Networks Affected

While Ethereum remains the primary network where token approvals are required and tracked, many popular Layer 2s and sidechains like Arbitrum, Optimism, Polygon, BNB Chain, and Avalanche also use similar mechanisms. The same risks and steps to revoke apply across them, with slightly different interfaces.

How to Check Token Approvals

Before revoking, users should inspect current approvals using blockchain explorers and analytical tools. Popular options include:

• Etherscan Token Approval Checker - etherscan.io/tokenapprovalchecker
• Revoke.cash - A trusted tool that supports multiple networks
• Debank - Offers token approval insights alongside DeFi portfolio tools

These services connect to your wallet and display a dashboard of all dApp contracts that can access your tokens, when they were approved, and for how much.

Why Token Revocation Matters

Revoking an unneeded or outdated approval removes the contract's ability to move tokens from your wallet. This simple step minimises risk exposure and helps ensure self-custody remains secure. It is especially critical after interacting with test platforms, new dApps, airdrop events, or discontinued smart contracts.

Even if a contract has not been exploited, proactive revocation is best practice for all users managing digital assets over time.

Steps to Revoke Token Approvals

Revoking a token approval prevents the previously authorised smart contract or dApp from accessing your tokens. This process involves sending a blockchain transaction that resets the approval allowance to zero. Here’s how users can revoke token approvals across various networks step-by-step.

Step 1: Choose a Token Approval Checker

Bespoke tools simplify the process. The most popular and secure options include:

• Revoke.cash: Supports Ethereum, Polygon, Arbitrum, Avalanche, BNB Chain
• Etherscan Token Approval: For Ethereum-only users
• Debank Approval Manager: Suitable for users with multichain assets

Select your tool of choice and connect your wallet using MetaMask, WalletConnect, Coinbase Wallet, or other supported clients.

Step 2: Identify Excess or Risky Approvals

Once connected, these platforms will list all active approvals. Look out for:

• Contracts with unlimited allowances
• Old or unknown dApps
• Platforms you no longer use
• Tokens with low or no balance (still exploitable)

Select these entries for revocation. Most checkers offer a clear “Revoke” button tied to each approval instance.

Step 3: Revoke Using Wallet Confirmation

Upon clicking “Revoke”, your wallet will initiate a transaction to reset the allowance to 0. This will require:

• Paying a network fee (gas), varying per chain
• Signing the transaction to confirm authority

On Layer 2 chains or during network congestion, gas fees may be higher. Users should wait for confirmation in their wallet or tracker before considering the approval fully revoked.

Optional: Set Custom Limits Instead

If token approvals are still necessary—such as ongoing dApp usage or recurring transfers—users may prefer updating the approval level, rather than removing it. Replace “unlimited” approvals with a fixed token amount aligned to your actual usage.

Post-Revocation Considerations

Once revoked, the smart contract will no longer be able to transfer tokens automatically. However, you can always approve again later with adjusted permissions when needed. This modular approach allows security-conscious users to maintain tighter wallet control while staying active in DeFi and Web3 ecosystems.

Revoking Doesn't Move Tokens

It's crucial to understand that revoking an approval does not send tokens anywhere—it simply removes permission. Your assets remain in your wallet. Revocation is distinct from transferring or unstaking funds.

Security Best Practices

• Review approvals monthly or after major airdrops
• Revoke access to test platforms that are no longer trusted
• Use multiple token approval checkers to verify consistency

Habitual revocation is a simple step in strengthening digital asset security as Web3 grows in complexity and activity.

Reasons for Revoking Token Permissions

Users revoke token approvals for a variety of reasons, mostly grounded in safety, control, and asset management. As Web3 activity increases and DeFi platforms evolve, users are more aware of the potential dangers tied to open token authorisations. Below are the core motivations behind revoking token access permissions.

1. Preventing Fund Drain Due to Exploits

One of the top reasons to revoke a token approval is to reduce attack surfaces. If a smart contract is compromised—via a hack, vulnerability, or backdoor—an open token approval can be used to drain assets from any wallet that authorised it. This has occurred repeatedly, from DeFi rug pulls to NFT marketplace exploits.

2. Ending Interaction with Inactive or Suspicious dApps

Users often test new or experimental dApps. Over time, many of these become outdated, inactive, or unsupported. Leaving token approval to such dApps—especially those with administrative smart contract powers—poses an unnecessary risk. Revoking limits potential liabilities as codebases become outdated.

3. Managing Wallet Hygiene

Good wallet hygiene mimics practices from cybersecurity: reducing exposure, limiting access, and maintaining up-to-date controls. Token approvals are effectively 'open ports' in this analogy. Users aiming to keep lean and clean wallets remove unnecessary permissions, similar to uninstalling unused software.

4. Lowering Exposure During Market Volatility

During volatile markets, frauds and phishing campaigns increase. If users accidentally connect wallets to malicious websites or fake airdrop claim pages, they could unknowingly grant token access. Revoking prior authorisations—even if from legitimate sources—limits exploit potential during uncertain periods.

5. Aligning Token Approvals with Actual Use

Unlimited approvals are convenient but unsafe. For example, approving a dApp to move 10,000 tokens when you'll only ever use 20 is excessive. Users committed to precision control revoke general approvals and reissue with exact token limits. This adds friction, but significantly heightens security.

6. Protecting Long-Term Self-Custody

Self-custody requires vigilance. Cryptocurrency wallets do not come with an expiry date on token approvals. That means a forgotten dApp approved months ago still holds power to access tokens. Revoking reasserts user dominance over digital assets in trustless environments, maintaining sovereignty long-term.

7. After Compromise or Wallet Concerns

In scenarios where users suspect their wallet has interacted with questionable platforms or smart contracts, revoking token approvals is a prudent first step—especially before migrating to a new wallet. This ensures that even if old addresses are exposed, they hold no live permissions to withdraw assets.

8. Following Major Upgrades or Forks

Token standards and smart contracts evolve. If a dApp undergoes an upgrade, forks its protocol, or deploys a V2 contract, the old approvals become obsolete. Users revoke historic approvals to maintain clarity and avoid confusion between legacy and active permissions.

Ongoing Security Habit for Web3 Engagement

Ultimately, revoking approvals is not a one-time act—it’s part of a responsible blockchain security habit. Just as users update software, manage passwords, or review app permissions on phones, Web3 wallets require periodic security checkups. Frequent review and revocation of token approvals is simple, effective, and free—yet often overlooked. Correcting this boosts safety and confidence in navigating the evolving decentralised ecosystem.