Token Standards and Creation Flashcards
7 cards from real Blockchain Technology practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Token Standards and Creation flashcards as text
When deploying a token contract, why is using OpenZeppelin's audited contracts generally preferred over writing from scratch?
Answer: They reduce the risk of security bugs through community-reviewed, tested code
Audited libraries lower the chance of introducing vulnerabilities compared to custom implementations.
What is a 'mintable' token, and what access-control risk does it introduce?
Answer: A token whose supply can be increased; the minter role must be tightly controlled to prevent inflation abuse
Mintable tokens allow new supply creation, so unrestricted minting permissions can be exploited to dilute holders.
What does making a token 'burnable' allow?
Answer: Holders or authorized roles to permanently destroy tokens, reducing total supply
Burning sends tokens out of circulation (often to address zero), decreasing totalSupply.
Why might a token contract include a 'pausable' feature?
Answer: To halt transfers during an emergency or exploit, buying time to respond
Pausable lets an admin freeze token activity temporarily if a vulnerability or attack is detected.
What is the main trade-off of deploying an upgradeable (proxy-based) token contract?
Answer: It adds flexibility but introduces centralization and proxy-related security risks
Upgradeable proxies allow logic changes but rely on an admin and add storage-layout and trust risks.
During token creation, what does setting an initial supply in the constructor and minting it to the deployer accomplish?
Answer: It allocates the entire starting supply to the deployer's address at deployment
Constructor minting credits the deployer with the initial supply, which can then be distributed.
Why should a fixed-supply (non-mintable) token omit any mint function entirely?
Answer: To guarantee the supply cap can never be exceeded, building holder trust
Removing mint capability cryptographically guarantees the supply cannot inflate beyond the cap.