Wallet Disconnects Don't Always Revoke Token Approvals

Disconnecting your wallet from a website or decentralized application (dApp) does not automatically revoke token approvals, according to experts. This distinction is crucial because many crypto users assume that clicking 'Disconnect Wallet' removes all permissions.

Token approvals are recorded by the token's smart contract and exist at a different level than the wallet connection. When you disconnect your wallet from a dApp, the connection between the wallet and the application is severed, but any previously granted token allowance or approval can remain active on the blockchain until it is specifically revoked or changed.

For instance, if you approve an unlimited USDT allowance, disconnecting your wallet does not necessarily remove that allowance. To revoke it, you need to submit a transaction that changes the allowance to zero, which requires a network fee and an actual blockchain state change.