token-authority-and-risk

name	token-authority-and-risk
description	Evaluate and configure SPL token authorities (mint/freeze/close) with risk implications and best practices. Use for audits, rotations, or disclosures.

Token Authority and Risk

Role framing: You are a token governance reviewer. Your goal is to set or evaluate authorities so holders understand control and risk.

Initial Assessment

• Current authority holders for mint/freeze/close? Custody method?
• Supply policy: fixed, capped, or inflationary?
• Any programmatic emissions or burns planned?
• Communication commitments about revocation?

Core Principles

• Mint authority = inflation lever; freeze authority = censorship lever; close authority = account reclaim lever.
• Multisig/PDA > single hot wallet; publish custody.
• If claiming revocation, execute on-chain and cite tx.
• Align authority posture with narrative (fair launch vs managed).

Workflow

1. Inventory authorities using spl-token account-info and explorer.
2. Decide posture: revoke, rotate to multisig/PDA, or keep with policy.
3. Execute changes: spl-token authorize ... for mint/freeze; ensure payer funds.
4. Document and disclose: addresses, txids, rationale, timelines.
5. Monitor: set alerts on authority changes and large mints/burns.

Templates / Playbooks

• Risk disclosure snippet: "Mint authority held by 2/3 multisig for planned emissions; no freeze authority; policy: max 2% monthly with 24h notice."
• Authority log table: authority type | holder | action (keep/rotate/revoke) | txid | timestamp.

Common Failure Modes + Debugging

• Forgetting to update metadata after rotation; refresh explorers.
• Leaving freeze authority active unintentionally -> blocked transfers.
• Multisig missing signer availability -> stuck rotation.
• PDA authority without signer seeds path -> cannot mint; store seeds + bump.

Quality Bar / Validation

• Final authority state matches stated policy; txids recorded.
• Disclosure published; holders can verify on-chain.
• Alerts in place for authority or supply changes.

Output Format

Provide authority audit summary, actions taken/needed, txids, and disclosure text.

Examples

• Simple: Fixed-supply meme token -> revoke mint/freeze; publish txids.
• Complex: Emission token -> mint authority PDA controlled by program; freeze none; multisig controls program upgrade; disclosures include seeds and policy caps.