How rug pulls work mechanically, what LP tokens actually represent, and why burning them is the most powerful trust signal available to a token launcher.
When a developer creates a liquidity pool, they deposit SOL and tokens. When traders buy the token, more SOL enters the pool. A rug pull happens when the developer removes all the liquidity — draining the SOL from the pool. The token price instantly falls to near zero because there is no SOL left to buy against.
When you create a Raydium pool, the protocol mints special LP tokens to your wallet. These represent your proportional ownership of the pool's contents. Whoever holds LP tokens can redeem them at any time to withdraw the underlying assets (SOL + your token).
| LP Status | What it Means | Trader Trust |
|---|---|---|
| Unlocked (dev holds LP) | Dev can remove all liquidity at any time | No trust — high rug risk |
| Locked (time-locked) | Temporarily locked, unlocks at a future date | Partial trust — still expires |
| Burned (100%) | Liquidity permanently inaccessible | Maximum trust — no rug possible |
The BURN tab handles LP token burning — not the standard token burn function.
After creating a Raydium pool, you'll see an LP token in your wallet. Copy its contract address.
The Workshop will load your LP token balance and show you the amount you hold.
Burn 100% of your LP tokens. Partial burns are less effective — traders will see the remaining LP as a partial rug risk.
The transaction sends all LP tokens to the null address. This is permanent — double-check you're burning the right token before signing.
DexScreener automatically detects burned LP tokens by checking whether LP token accounts are held by the null address. Within a few minutes of burning, your token page will display:
Having all three badges is the gold standard. A token with all three badges has removed every mechanism the developer could use to harm holders.
Use the BURN tab in the Workshop. It takes under 2 minutes.
Open Workshop →