Unsupported Token and NFT Policy Podcast

Unsupported Token and NFT Policy

The Goblins Protocol is a self-executing, permissionless, decentralized series of immutable smart contracts. Goblins, a U.S.-based company, provides one of many interfaces for interacting with this protocol and is subject to U.S. laws and regulations. Consequently, there may be circumstances where Goblins must restrict access to certain products via its interfaces.

Methods of Restricting Access on Goblins Interfaces

Access can be restricted in two main ways:

  1. Blocking Token Contracts:
    • Unsupported Tokens List: Tokens can be added to this list. When a token contract is blocked, users will see a message indicating that the token is not supported on the corresponding token info page.
    • Disabled Interactions: Interactions with any liquidity pool containing the blocked token, including both direct user actions and routing, will be disabled. However, wallet users can still send and receive unsupported tokens.
  2. Blocking Individual Addresses:
    • Disabled Actions: If a user attempts to connect or use a blocked address, all actions that would modify the blockchain state are disabled. This block type is typically based on sanctions lists or other third-party screenings.

Blocking criteria will be applied uniformly across all Goblins products.

Criteria for Restricting Access on Goblins Interfaces

Token contracts may be blocked for the following reasons:

  1. Legal and Regulatory Requirements:
    • Regulated Financial Instruments: A U.S. agency settlement or court judgment against the token’s issuer finds that the tokens/NFTs are regulated financial instruments (e.g., securities or derivatives) in secondary transactions.
  2. Fraud Allegations:
    • Regulatory Action: Major financial or criminal regulators file fraud allegations against the issuer.
  3. Intellectual Property Claims:
    • Infringement Notices: Notices of plausible infringement are served regarding:
      • Copyright (subject to DMCA notice and takedown provisions)
      • Trademark (not subject to DMCA counter-notice procedures)
      • Third-party publicity rights (beyond the use of common names and not subject to the DMCA)
  4. Risks to Users:
    • User Safety: Technical, fraud, or other risks are identified that could significantly impact user safety.

Individual or smart contract addresses will be blocked if they are:

  1. Sanctioned: Subject to U.S. government sanctions.
  2. Associated with Illegal Activities: Linked to illegal activities such as fraud, theft, or market manipulation.

Additionally, Goblins may block individual or smart contract addresses at its discretion, for reasons such as suspected fraud, theft, market manipulation, or unacceptable security vulnerabilities in a smart contract.

Additional Tips and Considerations

  1. Stay Informed:
    • Regulatory Changes: Keep abreast of changes in U.S. laws and regulations that may impact the availability of certain tokens or addresses on the Goblins Protocol.
    • Community Updates: Follow updates from the Goblins community and official channels for the latest information on blocked tokens and addresses.
  2. User Safety:
    • Verify Token Status: Before interacting with a token, check its status on the Goblins interface to ensure it is not blocked.
    • Risk Management: Be aware of the potential risks associated with tokens and addresses that might be blocked due to legal or security concerns.
  3. Legal Compliance:
    • Due Diligence: Conduct due diligence to ensure that the tokens you interact with comply with relevant laws and regulations.
    • Seek Legal Advice: If you are uncertain about the legal status of a token or address, consider seeking legal advice.
  4. Technical Vigilance:
    • Security Audits: Regularly audit smart contracts and addresses you interact with to identify and mitigate security vulnerabilities.
    • Monitor Announcements: Stay alert to announcements from Goblins regarding changes in blocking policies or the addition of new blocked tokens and addresses.

By adhering to these guidelines and staying informed about regulatory and security updates, users can navigate the Goblins Ecosystem more safely and effectively.