Token Approval vs Permit Signature

Both a token approval and a Permit signature can authorize another address or smart contract to spend tokens. The main difference is how you grant the permission.

An ordinary token approval is submitted as an on-chain transaction. A Permit is signed as a structured message, and the signature can then be submitted on-chain by the dApp or another authorized party.

warning

A Permit signature can grant spending permission even though signing it does not immediately charge a network fee or appear as a normal outgoing transfer. Review it as carefully as an approval transaction.

Comparison

Detail	Token approval transaction	Permit signature
User action	Confirms an on-chain approval transaction	Signs a structured message
Immediate network fee	Yes	Usually no fee for the signature itself
Immediately recorded on-chain	Yes, after confirmation	Not until the signature is submitted or used on-chain
Permission	Gives a spender an exact or unlimited allowance	Authorizes allowance data that can be submitted by the permitted mechanism
Common review data	Token, spender, amount, network, fee	Token, value, spender, expiration, wallet, network, and message details
Cancellation	Cannot cancel after confirmation; revoke with another transaction	Reject before signing; after signing, response depends on whether it was submitted and the Permit design

The precise behavior depends on the token contract and Permit standard used by the dApp.

How a Token Approval Works

A standard token approval follows this pattern:

1. A dApp asks you to approve a spender for a token.
2. Gem Wallet prepares an approval transaction.
3. You review the token, spender, amount, network, and network fee.
4. The blockchain confirms the transaction.
5. The spender can use the allowance according to the token contract.

Because the approval is an on-chain transaction, it requires the network's native coin for fees. For example, an Ethereum token approval requires ETH.

The allowance remains active until it is used, expires under the applicable contract rules, or is changed or revoked on-chain.

How a Permit Signature Works

A Permit flow separates signing from blockchain submission:

1. A dApp creates structured permission data.
2. Gem Wallet displays a signature review request.
3. You sign the Permit without submitting a normal approval transaction yourself.
4. The dApp or another permitted party can submit or use the signature.
5. The token or Permit contract processes the authorization according to its rules.

Supported Permit requests can include the token, amount, spender, expiration, nonce, chain information, and verifying contract. Batch formats can contain more than one permission.

No fee at the signing step does not mean no permission was granted. The party using the signature may pay the eventual submission fee or combine it with another transaction.

Review a Permit in Gem Wallet

Gem Wallet displays the approved token and amount at the top of supported Permit review screens. An amount may be exact or shown as Unlimited. The app can also display the requesting dApp, wallet, network, spender, expiration, warnings, and decoded payload fields.

Before selecting Confirm:

1. Verify the dApp and complete domain.
2. Confirm the selected wallet and network.
3. Check the token and exact or unlimited value.
4. Verify the spender and expiration.
5. Open Details and View Full Message when available.
6. Check whether a batch includes additional assets or permissions.
7. Reject the request if anything differs from the action you initiated.

Gem Wallet can warn about an unlimited token approval, an externally owned spender, suspicious spender data, and other risky permissions. Critical warnings disable confirmation.

Exact vs Unlimited Permission

An exact approval limits the spender to a stated token amount. An unlimited approval can allow continued spending up to the contract's maximum allowance until the permission is revoked or expires under the applicable mechanism.

Prefer an exact amount when the dApp supports it. If an unlimited value is required, confirm why it is needed, verify the spender, and revoke it when you no longer use the service.

Is Permit2 the Same as a Token Approval?

Permit2 is a permission system that lets compatible dApps use signed authorization data through a shared contract. Depending on the flow, a token may first need an on-chain approval for the Permit2 contract, followed by Permit signatures that define which spender can use an amount and for how long.

Review both layers:

• The on-chain allowance granted to the Permit2 contract.
• The token, amount, spender, and expiration in each Permit signature.

Do not assume that a familiar Permit2 contract makes an unfamiliar spender or dApp safe.

Can You Revoke Them?

An on-chain token allowance must be changed or revoked with another on-chain transaction. Disconnecting WalletConnect does not revoke it.

For a signed Permit, first determine whether it has already been submitted or used. Revoking the underlying on-chain token allowance can stop future spending through that allowance after the revocation confirms. Some Permit systems also use expirations or nonce changes, but the available controls depend on the contract and tool.

Follow How to Revoke a Suspicious Token Approval and verify the result on the correct blockchain explorer.

Safety Checklist

• Treat transactions and signatures as authorization requests.
• Verify the dApp, domain, wallet, network, token, and spender.
• Prefer exact amounts over unlimited access.
• Review expiration and batch contents.
• Do not equate “no fee” with “no risk.”
• Disconnect unused WalletConnect sessions.
• Revoke allowances that are suspicious or no longer needed.

For the broader concept, see What Are Token Approvals?. For message review steps, see How to Review a WalletConnect Signature Request.