We understand that some users have encountered flags on DeFi scanners like Go+, Tokensniffer or QuickIntel regarding their tokens created with Token Tool. These flags often indicate the presence of features like minting, burning, whitelisting, or fee mechanisms in the contract code, leading to concerns about risk. This document explains why these flags appear and how to interpret them correctly.
The Issue
DeFi scanners often automate the process of analyzing smart contracts by scraping information directly from the block explorer. While this provides a quick overview, it can sometimes lead to inaccuracies. Scanners may identify the potential presence of certain features within the contract’s source code. However, they often fail to determine whether those features have actually been enabled or activated during the token’s creation.
Token Tool’s Approach
Token Tool utilizes audited smart contract templates that offer a broad range of functionalities. These templates include features that can be configured and enabled or disabled by the user during the token creation process. While the code for these features may be present in the contract, it doesn’t automatically mean these features are active. Token Tool provides users with the flexibility to choose which features they want to use, and many features are commonly disabled.
Why the Flags Appear
The token scanners, in their automated analysis, detect the presence of the code for these features, even if they are disabled. They don’t currently have a mechanism to check the actual configuration of the contract on the blockchain. This leads to flags being raised even when the features are not active and pose no actual risk.
The Solution: Verify on the Block Explorer
The most reliable source of information about your token is the block explorer itself (e.g., Etherscan, Polygonscan, etc.). The smart contract source code of your token that you created via Tolen Tool can be verified (see here). This means that the code is publicly available on the explorer and can be inspected accordingly by everyone.
The block explorer displays the actual state of the contract on the blockchain. This information is the only reliable source of truth. You can use the block explorer to verify the contract’s functions and confirm whether specific features are enabled or disabled.
This will give you the most accurate understanding of your token’s properties. Select the “Read Contract” tab to easily check the features available.
Examples
- Minting: A scanner might flag a contract because it contains the code for a “mint” function. However, if the contract’s configuration on the block explorer shows that the minting function is disabled or that the minter role is not assigned, then the flag is misleading.
- Burning: Similarly, a “burn” function might be present in the code, but if it’s not activated or no burn authority is granted, it’s not a risk. The block explorer will reflect the actual burn status.
- Whitelisting: The presence of whitelisting functionality in the code doesn’t necessarily mean it’s active. The block explorer will show whether a whitelist is in place and how it functions. If no whitelist is active, the code is irrelevant for risk assessment.
- Fees: Scanners may flag the presence of fee mechanisms. However, the actual fee structure (or lack thereof) will be detailed on the block explorer. The code itself doesn’t indicate if the fee activated or the actual implemented fee (e.g., 0% fee).
Conclusion
While token scanners can be useful tools, it’s crucial to understand their limitations. Always refer to the block explorer as the definitive source of information about your token’s contract. If you have further questions, please don’t hesitate to contact us.
