LP Token Burn Strategy

Fanbase burns LP tokens to permanently lock liquidity—making rug pulls mathematically impossible and ensuring trading is always available.

Permanent Liquidity = Zero Rug Pull Risk

Fanbase takes an uncommon approach in crypto: we're burning LP tokens to lock liquidity forever. This makes rug pulls mathematically impossible.

Core Commitment: Once LP tokens are burned, liquidity cannot be removed. Ever. This is verifiable on-chain and provides absolute protection against rug pulls.

How LP Burn Works

Understanding Liquidity Pools

Traditional DEX Liquidity:

Add $FAN + ETH/USDC to pool
    ↓
Receive LP tokens (proof of ownership)
    ↓
LP tokens = can withdraw liquidity anytime

The Problem: Team holds LP tokens → Can remove all liquidity → Rug pull

Fanbase Approach

Add 50M $FAN + Portion of Raise to DEX
    ↓
Receive LP tokens
    ↓
BURN LP tokens permanently
    ↓
Liquidity locked forever

The Result: No one can remove liquidity. Not the team. Not anyone. Mathematically impossible.

LP Composition

$FAN Side: 50,000,000 tokens (5% of supply)

Paired Asset Side: Portion of $5M raise (exact amount flexible)

Potential Scenarios:

Conservative ($1M liquidity):

  • 50M $FAN + $1M USDC

  • Initial price: $0.02 (below ICO/Presale)

  • Allows immediate trading with buffer

Moderate ($2M liquidity):

  • 50M $FAN + $2M USDC

  • Initial price: $0.04

  • Balanced liquidity depth

Aggressive ($3M+ liquidity):

  • 50M $FAN + $3M USDC

  • Initial price: $0.06

  • Deep liquidity, minimal slippage

Exact amount determined near launch (market conditions dependent).

The Burn Transaction

How Burning Works

Step 1: Add liquidity to DEX (Uniswap, Aerodrome) Step 2: Receive LP tokens in wallet Step 3: Send LP tokens to burn address (0x000...dead) Step 4: LP tokens permanently destroyed Step 5: Liquidity permanently locked in pool

Proof & Verification

You can verify:

  • LP burn transaction hash (published)

  • View on Etherscan/Basescan

  • See LP tokens sent to dead address

  • Check they can never be retrieved

Dead address: 0x000000000000000000000000000000000000dEaD

This address:

  • No one controls private key

  • Tokens sent there = destroyed

  • Verifiable on-chain

Rug pull = impossible. Not "unlikely." Impossible.

Why This Matters

Trust Through Code

Most projects say: "Trust us, we won't rug"

Fanbase proves: "We CAN'T rug, even if we wanted to"

Difference:

  • Trust-based: Requires faith in team

  • Code-based: Mathematically enforceable

Code > Promises

Permanent Trading

Benefits:

For Holders:

  • Can always exit (liquidity always available)

  • No rug pull fear

  • Sleep well at night

For New Buyers:

  • Safe to buy (not going to rugpull tomorrow)

  • Liquidity depth visible

  • Trading spreads reasonable

For Community:

  • Trust signal (team committed)

  • Price stability (deep liquidity)

  • Long-term viability

Price Support

Liquidity provides:

  • Price floor (can't crash to zero if liquidity exists)

  • Reduced volatility (deep pools = smaller price swings)

  • Lower slippage (large buys don't spike price excessively)

Deep, permanent liquidity = healthier market.

DEX Launch Strategy

DEX-Only (No CEX Initially)

Why DEX-Only:

1. True Decentralization

  • CEX controls liquidity (can delist)

  • DEX = community controls

  • Permissionless (can't be censored)

2. No Listing Costs

  • CEX listings: $500K-$2M in fees/tokens

  • DEX: $0 (permissionless)

  • Capital saved for platform development

3. Immediate Launch

  • CEX = weeks of negotiations

  • DEX = launch in hours

  • Community gets access faster

4. LP Burn Possible

  • Can burn DEX LP tokens

  • Can't burn CEX liquidity (exchange controls)

  • Rug-proof only works on DEX

Target DEXs

Ethereum Mainnet:

  • Uniswap V2/V3 (most liquid)

  • Sushiswap (alternative)

Base Network:

  • Aerodrome (leading Base DEX)

  • BaseSwap (growing liquidity)

Multi-DEX Strategy: Split liquidity across pools for redundancy and accessibility.

CEX Later (If Demand Warrants)

Future Potential:

  • Community votes on CEX listings (governance)

  • Use treasury funds for listing costs

  • Target: Tier 1 exchanges (Binance, Coinbase, OKX)

  • Timeline: Year 2+ if platform succeeds

DEX-first doesn't mean DEX-only forever. Just prioritizes decentralization at launch.

Liquidity Depth Impact

Trading Experience

Shallow Liquidity (Bad):

  • Buy $10K → Price spikes 20%

  • Sell $10K → Price crashes 20%

  • High slippage (get worse price than expected)

Deep Liquidity (Good):

  • Buy $10K → Price moves 1-2%

  • Sell $10K → Price moves 1-2%

  • Low slippage (get price you expect)

Fanbase targets deep liquidity through 50M token allocation + substantial raise pairing.

Liquidity Ratios

Typical Projects:

  • 2-3% of supply in LP

  • Thin liquidity

  • Volatile trading

Fanbase:

  • 5% of supply in LP (50M tokens)

  • Plus significant stablecoin pairing

  • Deeper liquidity

  • Stabler trading

Better trading experience = healthier market.

LP Burn Alternatives (Why We Don't Use Them)

Alternative 1: Time-Locked LP

How it works: Lock LP tokens for X months, then unlockable

Problem: Temporary. Rug still possible after lockup expires.

Fanbase: Burns LP tokens. Permanent. No unlock ever.

Alternative 2: Team Holds LP

How it works: Team promises not to rug

Problem: Requires trust. Team could change mind.

Fanbase: Team CAN'T rug. Code prevents it.

Alternative 3: Partial Burn

How it works: Burn 50% of LP, keep 50%

Problem: 50% still removable (partial rug possible)

Fanbase: Burn 100%. Zero rug risk.

Comparison to Competitors

Project
LP Strategy
Rug Risk

Typical Project

Team holds LP

High

Better Project

Time-locked LP

Medium

Quality Project

Partial burn

Low

Fanbase

100% burned

Zero

Fanbase = Safest possible model.

Post-Launch Liquidity

Trading Begins Immediately

After LP burn:

  • Trading live on DEX

  • Anyone can buy/sell

  • Market determines price

  • 24/7 availability

No waiting for:

  • CEX listing approvals

  • Market maker negotiations

  • Liquidity unlock schedules

Immediate, permissionless access.

Monitoring Liquidity

Track on:

  • Dex Screener (liquidity depth)

  • DEX analytics (volume, holders)

  • Blockchain explorer (LP burn proof)

Community can verify:

  • LP tokens burned (transaction hash)

  • Liquidity depth (DEX reserves)

  • No removal attempts (impossible)

Transparency through on-chain data.

The LP Burn Promise

Fanbase commits to:

  1. 50M $FAN + raise portion added to LP

  2. LP tokens burned within 24-48 hours of launch

  3. Burn transaction published (public verification)

  4. Permanent liquidity (no future removal)

What this guarantees:

For Participants:

  • Safe participation (rug impossible)

  • Always tradeable (liquidity permanent)

  • Trust through code (not promises)

For Platform:

  • Community trust (proven commitment)

  • Healthy market (deep liquidity)

  • Long-term viability (can't rug and run)

Bottom Line: LP token burn is the ultimate commitment. Team can't rug even if they wanted to. Liquidity locked forever. Trading always available. Trust through mathematics, not faith.

This is how you launch a token correctly.

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