Verifying Contract Renouncement and Token Burns on the SEI Network

Understanding the Terms:

• Contract Renouncement: When developers relinquish control over a contract, typically by setting the "owner" or "admin" address to a null address (e.g., sei000...0000). This signifies their commitment to immutability and prevents unauthorized modifications.
• Token Burn: The intentional removal of tokens from circulation, often achieved by sending them to an inaccessible address like the null address. This can increase scarcity and boost token value.

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Initiating the Verification Process:
1- Acquire the Contract Address:
Primary Source: Utilize the official SEI Network blockchain explorer https://sei.explorers.guru/ to search for the contract address.

• Alternative Sources: Consult the project's website, community channels, or reliable third-party platforms like SEI Scan https://www.seiscan.app/ for the address.

2- Select a Block Explorer:

• Official Option: Leverage the SEI Network Explorer for a comprehensive and official view of contract data.
  • Third-Party Alternative: Explore SEI Scan for additional analytical tools and functionalities.

3- Examine the Contract Code:
Renouncement Verification:
Locate the remove_admin() function or similar within the contract code.
Confirm successful execution of the function.
Verify that the "Admin" address is now set to the null address (sei000...0000).


Burn Verification:
Scrutinize token transfers to the null address.
Confirm irreversible transfers of a significant portion or the entire token supply.
Pay close attention to the type of tokens burned (e.g., LP tokens).


4- Cross-Reference with Official Sources:
Project Documentation: Seek confirmation of renouncement and burn events in the project's official documentation or developer announcements.

5- Supplement Verification (Optional):
Time of Events: Note the timing of renouncement and burn events relative to the project's development timeline.

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SEI-Specific Considerations:

• Address Format: SEI Network addresses begin with "sei" (e.g., seixxx...xxx).
• LP Token Burns: When dealing with Liquidity Provider (LP) tokens, burning can involve sending them to either the pair address or the contract itself (if remove_admin has been executed).
• Minting Control: Verify that the update_minter() function has been used to set the minter to "none," effectively disabling further token creation.

LP Burn Example:
Transaction: https://www.seiscan.app/pacific-1/txs/F36658E8D16E122EEF14907769D85C1266F1F4CD68B81F6058F8A3F76EDCC181
Review transaction details to confirm the irreversible transfer of LP tokens to a null or inaccessible address.

Update Minter Example:
Transaction: https://www.seiscan.app/pacific-1/txs/8D13CB49B072FEAC5EF66DC372753E69B1CD7E54B15757E4674CD5772D3888BA
Verify that the update_minter() function has been executed successfully to disable further token creation.

Remove Admin Example:
Transaction: https://www.seiscan.app/pacific-1/txs/5B33F9C35A113F7CC4D42E1F3D9034C7C70A239399163586968A16DC1EEAC5B9
Ensure that the remove_admin() function has been used to relinquish control over the contract.

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Checking Liquidity Percentage:

1. Locate the provide_liquidity() function in the contract code.
2. Identify the min_lp_to_receive value.
3. Compare this value to the amount of LP tokens burned in the LP burn transaction.
4. Calculate the percentage of liquidity burned using the provided formula:

(Amount of LP burned / min_lp_to_receive) * 100 = Liquidity percentage burned

Example Calculation:

• min_lp_to_receive: 1414213561373
• LP tokens burned: 1385929290145
• Liquidity percentage burned: 98% (approximately)