Disclaimer:
This guide is provided for informational and working purposes only and does not represent official documentation from the KleverChain developers. The methods and instructions described herein are offered at your own risk. Errors in configuring Account Permissions may lead to irreversible consequences, including loss of control over your account and tokens. It is strongly recommended to thoroughly test all actions on the test network available at Klever Explorer
Issuing a token in a decentralized network is not just a technical task but also a matter of trust. On KleverChain, token creators enjoy extensive management capabilities even after token issuance, which can potentially undermine community confidence. However, there is a way to launch a truly decentralized token by eliminating the team’s influence on its economy once it has been generated.
The Role of the “Black Hole” Address
In KleverChain, there is a special address commonly referred to as the Black Hole address, often used for permanently removing tokens or rights from circulation. No one controls the private keys for this address, so anything sent there is rendered completely inaccessible. The Black Hole address on KleverChain is:
klv1000000000000000000000000000000000000000000000000000ql8r3r7
The Problem of Centralized Token Management on KleverChain
By default, KleverChain grants token creators a variety of administrative privileges:
• Changing the token supply (increasing or decreasing the total number of tokens);
• Minting new tokens or burning existing ones ;
• Wiping tokens from certain addresses, if those tokens are not staked;
• Freezing assets (freeze);
• Adjusting asset management permissions (Account Permissions) even after issuance.
While these features can be useful in certain scenarios, they also grant project teams excessive control, contradicting the principles of decentralization. When a token remains fully under the creators’ control, users must rely on the developers’ integrity rather than transparent code and smart contracts.
Achieving Maximum Decentralization
To eliminate the risk of abuse and assure your community that the token’s economic parameters cannot be arbitrarily altered, consider the following steps:
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Carefully plan and implement all token mechanics (Create Asset Contract, ITO, and any additional KApps) in advance.
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Use Account Permissions to assign different roles:
• Owner: The Black Hole address (see link above), which holds all critical rights but cannot exercise them since no one controls it.
• User: Your project’s address(es) with only limited permissions, necessary for operational control (e.g., interacting with liquidity pools or adjusting staking parameters).
1. Initial Setup: Create Asset Contract and ITO
Before relinquishing control, ensure your token’s economic model is fully prepared:
• Total and/or maximum supply ;
• Minting and burning rules (if needed initially);
• Staking parameters or other reward models;
• ITO (Initial Token Offering) details such as distribution schedules and lock-ups.
All of these parameters must be finalized before you transfer key permissions to the Black Hole address, as you won’t be able to revise them afterward.
2. Configuring Account Permissions: Owner = Black Hole Address, User = Project Address
KleverChain’s Account Permissions feature lets you define which addresses can perform specific actions with your token:
- Owner
• Holds all high-level privileges, including mint, burn, freeze, wipe, and other administrative settings.
• If the Owner is set to the Black Hole address, any action needing an Owner signature—such as changing token supply or transferring ownership—becomes impossible.
- User
• Is granted only the permissions you explicitly allow, for instance:
• Managing staking (if required);
• Adjusting FPR/KDA pool settings;
• Other operational tasks that do not involve altering core token supply or balances.
Why the Black Hole Address Guarantees Immutability
Changing critical parameters requires an Owner signature. Since the Black Hole address cannot sign transactions, any function demanding Owner authorization is effectively locked forever, ensuring no one can alter the token’s essential properties.
3. Transferring Key Privileges to the Black Hole Address
After you’ve tested all contracts and confirmed your token’s parameters, you must transfer all administrative rights (mint, burn, freeze, wipe, and other “Administrative Settings”) to the Black Hole address. From that point on:
• No one can alter the token supply by forcibly minting or burning tokens;
• No one can reassign the Owner role to themselves, as the Black Hole address cannot sign transactions;
• Your token’s economics remain permanently fixed, preventing unilateral changes.
4. Multisignature for Limited Management
Even with the core token functions locked down, your project may still require a degree of flexibility. That’s where Multisignature (multisig) comes into play:
• The User role can be shared among multiple trusted addresses in an m-of-n arrangement.
• Any significant but allowed action within User privileges (e.g., adjusting staking parameters) needs approval from multiple parties, reducing the risk of a single point of failure.
• Meanwhile, anything that requires the Owner’s signature (critical economic changes) remains off-limits, since the Owner is the Black Hole address.
Conclusion
Creating a truly decentralized token on KleverChain involves a strategic mix of sound economic design and careful use of Account Permissions:
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Finalize all token parameters (smart contracts, ITO, etc.) before locking anything.
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Assign the Black Hole address as the Owner role, preventing any future manipulation of supply or administrative settings.
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Give the User role to your project address(es) with only essential operational privileges.
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Consider KleverChain’s multisig solutions to safeguard your User permissions and distribute responsibility across multiple participants.
By following these steps, you ensure that crucial token parameters remain permanently untouchable, thereby strengthening user confidence and upholding the spirit of decentralization. To learn more about creating and configuring assets on KleverChain, refer to the official KleverChain documentation.