BURN THE LIQUIDITY POOL SOLANA IN 5 STEPS

If you want a successful launch of your token or meme coin in Solana, it is necessary to burn the Liquidity Pool to maximize your participation in the DeFI.

If you want to burn a Solana Liquidity Pool, or the same burn the Liquidity Pool Token Pair, you must take into account the trust of the people. You have to gain the trust of investors. If you make a serious project you will avoid other users thinking that you are a scammer or a rug puller. Transparency and trust are key in this process.

It turns out that if you don't burn the Liquidity Pool, it will be easy for you to withdraw the funds at any time, which is often the case in rug pull.

HOW TO BURN THE LIQUIDITY POOL SOLANA IN 5 STEPS?

Once the Liquidity Pool is created, the creators receive a pair of liquidity tokens or tokens. The liquidity allows other users to buy or sell it. At this point, creators can make three decisions: Burn them, Use them or Block them.

Using them would mean what was said before, something known as rug pull.

For now, we will go for the burn. While there are cryptos like Etherum that, you send it to a dead address and the tokens disappear, but that doesn't happen in Solana. There is no concept of "dead address" or "burn address".

Thus, if we operate with SOL, we need to use a tool to burn it as Sol Incinerator. It will allow us to perform the burning of any token such as the liquidity token. It is simple. You don't need to have great knowledge in coding. Just follow this explanation as it is:

  • To get started you have to visit the official Sol Incinerator website.
  • Connect the solana wallet that has the token to be burned.
burning liquidity pool solana
  • Then you have to activate the Lite->Pro button (bottom left corner). Without Pro Mode you cannot Burn your Liquidity Pool Solana.
  • When connecting, a new screen opens and we have to click on the LP column (fifth option).
  • Select the Raydium button.
  • Choose the Liquidity Pool Solana token.
  • And click on "Confirm Burns".

BENEFITS OF BURNING THE LIQUIDITIY POOL SOLANA

If you want to wage war on inflation, you must burn your Solana Liquidity Pool Token. It will serve to maintain/increase the value and increase confidence in addition to other benefits such as the following:

  • Reduce the total supply of tokens in circulation.
  • Increase token value, efficiency and demand.
  • Increase confidence in the long term.
  • Improve governance and decision making.
  • Attract more investors.
  • Deflationary effect.

In order to achieve the latter benefit, the tokens must be effectively destroyed.

BLOCK LIQUIDITY POOL SOLANA

Blocking the Solana Liquidity Pool is an alternative to burning the liquidity, the tokens cannot be used but will still exist.

BLOCK SOLANA LIQUITITY TOKEN

The action of burning LP tokens increases trust by preventing the extraction of liquidity by unauthorized persons. This method is more secure than simply "blocking" tokens, since blocked tokens can be released later, while burned tokens cannot be recovered.

Anyway, in order to block your LP tokens you must go to Streamflow. The platform for this purpose. This site will allow you to lock any token with the Token Lock feature. To get it you must:

  1. Connect yu Wallet in Streamflow.
  2. Click on "Create New" to configure a New Token Lock .
  3. Choose the token to use.
  4. Define the Time and Date for Unlocking.
  5. Set the amount of funds to be unblocked.
  6. The last step is to click on "Create Lock Contract".

If you want the Funds to be unlocked at the same address as the Token Lock is created, you must activate the "Use connected wallet" option.

If you don't know yet our tool to create a Liquidity Pool in Solana click here.

CONCLUSIONS ON BLOCKING OR BURNING THE LIQUIDITY POOL IN SOLANA

Burning or Blocking the Liquidity of your LP is an action that will demonstrate the transparency of your token and make it more attractive to investors, although burning liquidity tokens is the best option in this regard. Currently it is difficult for web3 users to buy a token or meme coin whose liquidity is not burned.

If you are interested in keeping up to date with information like the one in this post, try subscribing to our newsletter to stay informed about the features of the crypto ecosystem.

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