What Happens to a Token Allowance If the Dapp’s Smart Contract Is Upgraded or Changed?
The token allowance is tied to a specific smart contract address. If a dApp upgrades to a new smart contract, any allowances granted to the old contract address are not automatically transferred.
The old allowance remains active but is now irrelevant to the new, upgraded dApp. The user must grant a new token allowance to the new smart contract address to interact with the upgraded protocol.
The old allowance should still be revoked as a security best practice.
Glossar
Dapp
Architecture ⎊ A decentralized application (Dapp) within cryptocurrency, options trading, and financial derivatives represents a software construct operating on a blockchain, fundamentally diverging from traditional client-server models.
Smart Contract Address
Deployment ⎊ A Smart Contract Address represents a unique identifier on a blockchain network, functioning as the destination for interactions with a deployed smart contract.
Token Allowance
Allocation ⎊ Token allowance, within cryptocurrency derivatives, represents a predetermined quantity of an underlying asset or its equivalent value designated for a specific trading strategy or participant.
Allowance
Mechanism ⎊ Allowance, within cryptocurrency and financial derivatives, represents a pre-approved quantity of computational resources or collateral designated for specific operations, notably in decentralized finance (DeFi) protocols and options execution.
Smart Contract
Code ⎊ The contract is fundamentally self-executing code deployed on a distributed ledger, embodying the terms of the agreement in an immutable format.
Contract Address
Identifier ⎊ The contract address serves as the unique, immutable hexadecimal identifier on a blockchain network, pinpointing the deployed location of a specific smart contract.