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Allowance means that we can grant approval to another contract or address to be able to transfer our ERC20 tokens. Token allowances let smart contracts spend tokens on your behalf.Of course, normally, you still initiate any operation with these tokens. This step is known as token approval or token allowance. You're allowing the dapp to directly interact with your tokens and complete a transaction. There are several ways to set a token allowance, both programmatically and through a UI. We will cover options for both methods below. A transaction that allows a token owner to delegate a token spender to spend the specified token amount on behalf of the token owner. MetaMask allows you to manually edit the number of tokens dapps can access. Click here to jump straight to how. Approve(address spender, uint256 amount) → bool external.