Dangerous Token Mechanics
Mint authority can inflate supply, freeze authority can lock your tokens, and transfer taxes skim each trade. Prefer tokens with authorities revoked and no hidden tax.
What it means
A token's contract can retain special powers. Mint authority allows creating new supply. Freeze authority allows locking specific wallets. A transfer tax takes a cut of every buy or sell.
Why it matters
These powers are invisible on a price chart but decide what can be done to holders. Retained mint authority can dilute you to zero; freeze authority can trap you.
What happens if you ignore this
If a creator keeps these authorities, they can inflate supply, freeze your ability to sell, or bleed you through taxes — all after you've bought in.
Beginner tips
- Prefer tokens where mint and freeze authorities are revoked.
- A small, disclosed tax can be legitimate; a hidden or extreme tax is not.
- Authorities being revoked reduces certain risks — it never makes a token 'safe.'
Common mistakes
- Ignoring authority status because the token is trending.
- Confusing a revoked authority with a full safety guarantee.