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Transferability
Limited vs Full Transferability, Pros and Cons
Transferability refers to the ability of a token to be transferred to addresses (receivers) by addresses (senders). Usually, ERC20 tokens are fully transferable, which means that anyone can send tokens to any address they like.
However, P00LS Creator Tokens start with limited (or non) transferability to begin with, which has some significant (positive) implications:
- P00LS tokens have no fluctuating price and are not speculative
- P00LS tokens can only be earned - not bought - by holders
- The biggest token holder is the most engaged community member
With limited transferability, P00LS tokens can be compared to on-chain miles or loyalty points for any community.
Limited Transferability means that the list of wallet addresses that can send and receive tokens is permissible. The list of allowed senders and receivers constitutes the Token Allowlist. When your token is minted, the only senders and receivers on the Allowlist are P00LS and the creator.
Any wallet address added to the Allowlist on a Token Contract can send and receive tokens to and from anyone. The Allowlist is bi-directional: any address on the Allowlist is both an allowed sender and receiver.
Through the Creator Portal, you can add new wallet addresses to your Token Allowlist.
Creators can choose to make their tokens fully transferable at all times through the creator portal.
This means that any wallet address can transfer their tokens to different wallets, exchanges, or DEXs.
Full transferability also means a creator or the creator community can decide to add liquidity to the token.
Important: This change cannot be reversed. Once a token is made fully transferable, it cannot revert back to limited transferability.
Limited Transferability is the safest option from a regulatory and security perspective. It considerably limits regulatory risks as well as potential scams or rug pulls.
Limited Transferability is the best option for a healthy community. Token holders have proved their engagement and their involvement in the community of a creator. This reduces the risk of toxicity and the presence of speculators in the token community
Full transferability is the best option for liquidity. Fully transferable tokens can be added to any exchanges or DEX and be bought and sold by anyone.
Full transferability is the best option for monetization. The token has a price that can fluctuate up or down and create monetization opportunities.
P00LS Advice: Start with limited transferability, build your community and assess full transferability later down the line.⭐
If you are a P00LS Creator and you'd like to Modify your Allowlist or change your token to fully transferable, please fill out this form.