The DERC20 contract is a standard ERC-20 implementation with added governance, voting, and vesting capabilities. The architecture is robust, leveraging OpenZeppelin standards for core functionality. However, the contract grants significant centralized control to the owner, including the ability to mint tokens and halt transfers, which introduces notable trust requirements for token holders.
Early-stage security check — honeypot & rug-pull analysis
Is American Dividend Protocol a Scam?
Not verified
This record has not gone through deep verification and is not being monitored. The score is a dated snapshot — the token’s risk can change at any time.Own this token? Put it under verification →The DERC20 contract is a standard ERC-20 implementation with added governance, voting, and vesting capabilities.
Read the full analysis- Owner can pause all transfers
- A privileged address controls a switch that decides whether transfers go through
- Mintable supply — no cap found, dilution unbounded
- LP lock status UNKNOWN — the pool's LP could not be read
- Top-10 concentration > 30%
Exact factors
- Owner can pause all transfers
- A privileged address controls a switch that decides whether transfers go through
- Mintable supply — no cap found, dilution unbounded
- LP lock status UNKNOWN — the pool's LP could not be read
- Top-10 concentration > 30% (100.0% total → 38.5% effective; 0.0% in EOAs, 96.2% in contracts; 3.8% burned, locked or in pools excluded)
Each factor is an on-chain fact recorded at the time of this analysis. The score is computed from them by a deterministic function, so the same contract returns the same score for anyone who runs the audit. How scores are computed
Security Checklist
as of audit · Oct 21Holders
as of audit · Oct 21, 2026- Contractstreasury, vesting, bridge, staking96.2%
- Burnedout of circulation3.8%
How holder types affect the score
Share held by contracts — treasury, vesting, bridge or staking — is discounted against share held by wallets when the score is computed: a contract cannot decide to sell the way an anonymous holder can, though it can still be drained or voted to sell. Effective concentration is the figure the risk score is actually calculated from.
Holder balances as recorded by the audit of Oct 21, 2026
Liquidity
as of audit · Oct 21The risk score reads depth across every pair.
Whether the LP tokens are locked could not be determined.
Security Findings
MediumCentralized Minting Control
The owner has the ability to increase the total supply of the token through the updateMintRate and release functions. This allows the owner to dilute the value of existing holdings at their discretion.CP-01
Issue
The owner has the ability to increase the total supply of the token through the updateMintRate and release functions. This allows the owner to dilute the value of existing holdings at their discretion.
Fix
Restrict minting capabilities to a decentralized governance process or implement a hard-coded, immutable inflation schedule that cannot be altered by a single address.
Status
Unresolved
MediumCentralized Transfer Control
The owner can use the lockPool and unlockPool functions to enable or disable token transfers. This gives the owner the power to freeze user assets or prevent trading activity entirely.CP-05
Issue
The owner can use the lockPool and unlockPool functions to enable or disable token transfers. This gives the owner the power to freeze user assets or prevent trading activity entirely.
Fix
Remove the ability to pause transfers or move this functionality to a community-voted emergency pause mechanism with a clear, transparent trigger condition.
Status
Unresolved
InfoWho holds the supply
The ten largest holders own 100.0% of supply. Of that, 3.8% burned — not holders that can sell, so excluded from the concentration score. What remains: 0.0% in wallets, 96.2% in other contracts. 1,938 holders in total.QA-HOLDERS
Issue
The ten largest holders own 100.0% of supply. Of that, 3.8% burned — not holders that can sell, so excluded from the concentration score. What remains: 0.0% in wallets, 96.2% in other contracts. 1,938 holders in total.
Fix
Watch the largest wallets that are not exchanges, pools or locks — those are the ones that can move the price.
Status
Acknowledged
InfoNot listed by any independent source
1,938 holders. Not listed by CoinGecko or any exchange GoPlus tracks. Nothing independent confirms who is behind this token, so every power its contract grants is scored at face value.QA-IDENTITY
Issue
1,938 holders. Not listed by CoinGecko or any exchange GoPlus tracks. Nothing independent confirms who is behind this token, so every power its contract grants is scored at face value.
Fix
Match the contract address against the project's official channels before trading.
Status
Acknowledged
InfoThe market for this token
Liquidity $50K (DexScreener, all pools). 24h trading volume $242K (DexScreener, all pools).QA-MARKET
Issue
Liquidity $50K (DexScreener, all pools). 24h trading volume $242K (DexScreener, all pools).
Fix
Size any position to the liquidity and daily volume shown — they set how much you can sell and at what price.
Status
Acknowledged
InfoAsset class: Project token
A token issued by a project for use, governance or fundraising. Scored on its contract and market facts. The class itself adds no points; the contract and market facts decide the score. Basis: no class-specific evidence. Tokenomics — Supply: mintable with no on-chain cap found. Control: a ProxyAdmin contract. Code: not upgradeable (no proxy). Fees: no buy or sell tax. Market: $50K of DEX liquidity across 1 pools. Launch: under a day of market history.QA-PROFILE
Issue
A token issued by a project for use, governance or fundraising. Scored on its contract and market facts. The class itself adds no points; the contract and market facts decide the score. Basis: no class-specific evidence. Tokenomics — Supply: mintable with no on-chain cap found. Control: a ProxyAdmin contract. Code: not upgradeable (no proxy). Fees: no buy or sell tax. Market: $50K of DEX liquidity across 1 pools. Launch: under a day of market history.
Fix
Check the project's own documentation for what the token is used for; this report covers what the contract allows.
Status
Acknowledged
InfoRecently launched — less than a day of market history
The token's oldest DEX pool is less than a day old. Age is not part of the risk score — a new token is not a risky one by default — but a short history means fewer trades and holder changes behind the facts in this report.QA-RECENT
Issue
The token's oldest DEX pool is less than a day old. Age is not part of the risk score — a new token is not a risky one by default — but a short history means fewer trades and holder changes behind the facts in this report.
Fix
Re-check ownership, liquidity and holder distribution as the token matures; those are the facts that move early.
Status
Acknowledged
Analysis
AI Copilotas of audit · Oct 21The contract follows 7.1 Architecture standards by utilizing well-audited OpenZeppelin libraries for ERC-20 and governance. 7.2 Code Security is high, with clear logic and standard implementation patterns. 7.3 Access Control is strictly enforced via the Ownable pattern, though it creates a single point of failure. 7.6 External interactions are limited, reducing the attack surface for reentrancy or flash loan exploits.
7.4 Economic and 7.5 Governance aspects are heavily centralized under the owner. The owner has the power to mint tokens via updateMintRate, which directly impacts 7.4 Economic stability by diluting holders. 7.5 Governance is currently limited to the owner, meaning there is no decentralized mechanism for community oversight of these powerful functions.
7.7 Upgrades are not supported as this is a standard non-proxy contract. 7.8 Operations are straightforward, with the owner managing the lifecycle of the token. The lack of upgradeability ensures immutability of the current logic, which is a strength for security.
To improve trust, consider transitioning ownership to a multi-signature wallet or a decentralized governance contract (DAO).
This would mitigate the risk of a single compromised key performing unauthorized minting or halting transfers. Additionally, implement a timelock mechanism for all privileged functions. This would provide transparency and a delay period for the community to react to significant changes in token supply or transfer rules.
Contract & Record
Free for any token on the record. It links to this page and always shows the current score and the date it was checked.
- Oct 21, 202658Medium
Score changes are recorded as dated snapshots — history is append-only and cannot be edited.
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