As blockchain technology continues to evolve, so do the mechanisms that secure and govern digital assets. Token standards such as ERC-20 and ERC-721 shaped the early Web3 ecosystem, but security vulnerabilities—especially those stemming from Infinite Approval—have resulted in major losses, exploited smart contracts, and shaken user trust.
This growing risk has sparked the push toward safer token standards, designed to give users better control, minimize attack exposure, and introduce smarter permission systems.
In this article, we explore what safer token standards are, why they matter, and how they address long-standing security flaws in traditional token models.
Understanding the Problem: Why Traditional Token Standards Fall Short
The most widely used standards, particularly on Ethereum, were created when Web3 was still young. They prioritized ease of use and basic interoperability but overlooked long-term security concerns.
One of the biggest issues? Infinite Approval.
What is Infinite Approval?
When a user interacts with a decentralized application (dApp), the platform often requests the right to move tokens from the user’s wallet. For convenience, many dApps ask for a permanent, unlimited spending approval—meaning the smart contract can access any amount of tokens at any time without further confirmation.
This creates a dangerous scenario:
If the dApp’s smart contract is hacked, attackers may drain all approved tokens.
Users rarely remember which approvals they granted.
Revoking approvals requires manual steps most users never take.
This is why Infinite Approval has been a key weakness exploited in multiple Web3 hacks.
What Are Safer Token Standards?
Safer token standards are upgraded frameworks designed to reduce attack vectors, protect users, and enforce stricter spending rules. Instead of blindly trusting dApps, these standards introduce smarter permission systems, improved transaction logic, and more granular access control.
Common safety improvements include:
Time-bound approvals
Spending limits (allowances)
Revocable permissions
Permit-based signatures (EIP-2612)
Modular access control
Enhanced error handling
These enhancements make token behavior predictable and safer—both for beginners and professionals.
Key Features of Safer Token Standards
1. Limited Allowance Instead of Infinite Approval
Modern standards criticize the outdated concept of Infinite Approval and instead promote:
Exact token approval amounts
Automatic reset after each transfer
Notifications for unusual allowance requests
This means even if a contract is compromised, attackers cannot drain unlimited tokens.
2. Permit-Based Approvals (No More Blind Trust)
Newer designs allow users to sign approvals off-chain using their private key without exposing wallet permissions unnecessarily.
This:
Reduces the number of risky on-chain transactions
Gives users greater visibility
Prevents unauthorized spending
Standards like EIP-2612 push the ecosystem closer to secure, flexible approvals.
3. Time-Locked and Expiring Permissions
Approvals automatically expire after a specific duration.
This significantly lowers long-term exposure, especially for:
Old dApps users no longer interact with
Abandoned smart contracts
Temporary usage sessions
Short-lived permissions reduce long-term attack windows.
4. Enhanced Error Handling and Safer Transfers
Some new standards ensure that token transfers cannot fail silently—a major issue in earlier ERC-20 designs.
Improvements include:
Revert messages for failed transfers
Safer transfer functions
Compatibility across different implementations
This protects users and developers from unexpected behavior.
5. Built-In Anti-Phishing Safeguards
Modern standards may include:
Human-readable approval prompts
Session-based permissions
Alerts for suspicious approval requests
These upgrades aim to prevent social engineering attacks.
Examples of Emerging Safer Token Standards
Several innovations are leading the transition to safer token behavior:
ERC-777
Improves wallet interactions, reduces friction, and includes advanced hooks—but introduced its own risks, leading to mixed reception.
ERC-1155
More secure and efficient for multiple asset types, with better handling of transfers and checks.
ERC-20 Extensions (like EIP-2612)
Improves approval mechanisms with permit functions.
Non-Ethereum Ecosystem Standards
SPL Tokens (Solana) have strict instruction formats.
FA2 Tokens (Tezos) include flexible permissioning.
CIP-68 (Cardano) supports metadata-based constraints.
Together, these show how blockchain platforms are focusing more heavily on security and permission control.
How Safer Token Standards Protect Users
1. They Reduce Permission Risks
No more blind, unlimited approvals lying dormant in wallets.
2. They Minimize Damage Even if a dApp is Compromised
Spending caps and expiration rules prevent catastrophic token drains.
3. They Increase User Confidence
Clearer permission messages and smarter approval flows reduce confusion.
4. They Improve Interoperability and Developer Experience
Predictable behavior → fewer bugs → safer ecosystems.
5. They Enable Better Compliance
Smoother auditability and improved access control align with future regulations.
Why Infinite Approval Must Be Phased Out
The heavy reliance on Infinite Approval is incompatible with the security demands of modern digital ecosystems.
The industry recognizes that users cannot be expected to:
Review approvals regularly
Revoke forgotten permissions
Understand the risks buried in smart contracts
Safer token standards remove this dangerous dependency and make secure behavior default rather than optional.
The Road Ahead: What’s Next for Token Security?
The future of token security will likely include:
Adaptive permission systems (AI-driven risk scoring)
Wallet-level controls limiting contracts automatically
Granular spending rules similar to bank cards
Multi-signature approvals for large transactions
Native revocation reminders
With increasing user adoption and regulatory pressure, safer token standards are no longer optional—they are essential.
FAQs
1. What is wrong with Infinite Approval?
Infinite Approval gives a dApp permanent access to all your tokens. If that dApp is hacked, the attacker can drain every approved token instantly.
2. How do safer token standards improve security?
They introduce limited approvals, time-bound permissions, safer transfer logic, and better error handling—making it harder for hackers to exploit outdated token behavior.
3. Do safer token standards affect usability?
Yes—but positively.
Users get clearer control, smarter approvals, and fewer risky steps. Modern wallets also automate most of the complexity.
4. Are all blockchains moving toward safer token standards?
Yes. Ethereum, Solana, Cardano, Tezos, and others are all improving token frameworks to reduce vulnerabilities.
5. Can I still use Infinite Approval if I want convenience?
You can—but it’s strongly discouraged. Regular approvals or smart-permit systems offer much better protection with minimal inconvenience.
