Liquidity Locking
Liquidity locking is a crucial security feature that protects investors by ensuring project owners cannot remove trading liquidity from DEXs.
What is Liquidity Locking?
When a token launches on a decentralized exchange (DEX), the project must provide liquidity - a pool of tokens paired with another asset (like ETH or BNB) that enables trading.
Liquidity locking means these LP (Liquidity Provider) tokens are sent to a smart contract that prevents their withdrawal for a specified period. This protects investors from "rug pulls" where developers drain the liquidity pool.
TokenKickstarter Requirement
All presales on TokenKickstarter require a minimum of 51% liquidity allocation with at least a 30-day lock period. Recommended: 70%+ liquidity with 6+ month lock.
Benefits of Locked Liquidity
Rug Pull Prevention
Locked liquidity cannot be withdrawn by project owners, protecting investors from sudden liquidity removal.
Investor Confidence
Projects with locked liquidity attract more investors who feel secure about their investment.
Long-term Commitment
Lock durations signal the team's commitment to the project. Longer locks = more trust.
Verified Badges
Locked liquidity is displayed on presale pages with verification badges for transparency.
How It Works
Create Presale
Set your liquidity percentage and lock duration during presale creation
Presale Ends
Once the presale is successful, prepare for finalization
Finalize
Upon finalization, liquidity is automatically added to DEX and locked
Verify Lock
Lock details are publicly visible on the presale page and blockchain
Recommended Lock Durations
Verifying Liquidity Locks
You can verify any liquidity lock by checking:
- The presale page displays lock details with verification badge
- Lock contract address can be verified on blockchain explorer
- LP token balance in lock contract matches the locked amount
- Unlock timestamp is visible and immutable on-chain
Important Note
While locked liquidity significantly reduces rug pull risk, it doesn't guarantee project success. Always perform thorough due diligence including team verification, tokenomics analysis, and community sentiment before investing.