Freeze and Clawback Addresses for Algorand Standard Assets

Generally you don't want to set a freeze or clawback address on the Algorand NFTs you create and want to sell. This might seem like a no-brainer but only if you kow what those are used for. Also, I'm sure there are use cases where these two addresses are useful.

Check out the Algorand Standard Assets (ASAs) documentation to learn more but below are brief quotes I got from the page on each address.

Freeze Address

The freeze account is allowed to freeze or unfreeze the asset holdings for a specific account. When an account is frozen it cannot send or receive the frozen asset.

Clawback Address

The clawback address represents an account that is allowed to transfer assets from and to any asset holder (assuming they have opted-in). Use this if you need the option to revoke assets from an account (like if they breach certain contractual obligations tied to holding the asset). In traditional finance, this sort of transaction is referred to as a clawback.

Example

The NFT on the left was the first NFT I created. It has a freeze and clawback address. The NFT on the right is the one I created without a freeze or clawback address.