BURN THE SOLANA LIQUIDITY POOL IN 5 STEPS
If you want a successful launch of your token or meme coin on Solana, it is necessary to burn the Liquidity Pool to maximize your participation in DeFI .
If you want to Burn a Solana Liquidity Pool, or the same burn the Token Pair of the Liquidity Pool, you must take into account people's trust . You have to earn the trust of investors. If you carry out a serious project you will prevent other users from thinking that it is a scammer or a rug pull . 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 often happens in rug pulls (
https://smithii.io/dictionary/rug-pull/).
HOW TO BURN SOLANA LIQUIDITY POOL IN 5 STEPS?
Once the Liquidity Pool is created , the creators receive a pair of tokens or liquidity token . Liquidity allows other users to buy or sell it. Right now, 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'll go for the burning. Although there are cryptos like Etherum that, you send it to a dead address and the tokens disappear, but that does not happen in Solana. There is no concept of “ dead address ” or “ burn address ”.
This way, if we were to trade SOL , we need to use a tool to burn it like Sol Incinerator (
https://sol-incinerator.com/). It will allow us to burn any token such as the liquidity token . It is simple. You won't need to have extensive coding knowledge. You just have to follow this explanation as it is:
To start you have to go to the official Sol Incinerator website .
Connect the solana wallet that has the token to burn.
Then you have to activate the Lite->Pro button (bottom left corner). Without Pro Mode you cannot Burn your Solana Liquidity Pool .
When connecting, a new screen opens and we have to click on the LP column (fifth option).
Select the Raydium button .
Elije el token de Liquidity Pool Solana .
And click on « Confirm Burns «.
BENEFITS OF BURNING SOLANA POOL LIQUIDITIY
If you want to wage war on inflation, you must Burn your Solana Liquidity Pool Token . It will serve to maintain/increase value and increase confidence in addition to other benefits such as the following:
Reduce the total token supply 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 this last benefit, the Tokens have to be effectively destroyed.
BLOCK LIQUIDITY POOL SOLANA
Blocking the Solana Liquidity Pool is an alternative to burning liquidity, the tokens cannot be used but will still exist.
BLOCK SOLANA LIQUIDITY TOKEN
The action of burning LP tokens increases trust as it prevents the extraction of liquidity by unauthorized persons. This method is more secure than simply "locking" tokens, since locked tokens can be released later, while burned tokens cannot be recovered .
Anyway, in order to block your LP Token you must go to Streamflow (
https://streamflow.finance/) . The platform for this task. This site will allow you to lock any token with the Token Lock feature . To achieve it you must:
Conectar yu Wallet en Streamflow.
Click on "Create New" to configure a New Token Lock .
Choose the Token to use.
Define the Time and Date for Unlocking .
Set the amount of funds to unlock .
The last step is to click on « Create Lock Contract «.
If you want the Funds to be unlocked at the same address where the Token Lock is created , you must activate the " Use connected wallet " option .
If you still don't know our tool to create a Liquidity Pool in Solana (
https://smithii.io/create-liquidity-pool-solana/), go 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.
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