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.

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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.

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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).

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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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