Glossary

Pool Share: Your Stake in a Token's Liquidity

noun•Spawned Glossary

Pool share represents your ownership percentage of a token's total liquidity pool. It determines your influence on price stability and your portion of trading fees. On platforms like Spawned, this directly connects to ongoing holder rewards from a 0.30% fee on every trade.

Key Points

  • 1Pool share = your tokens / total pool tokens, defining your ownership stake.
  • 2Larger share provides greater price impact and earns more trading fees.
  • 3Spawned directs 0.30% of every trade to holders based on their pool share.
  • 4Essential for understanding launchpad economics and long-term token value.

What Pool Share Means for Token Creators & Holders

More than just a percentage—it's a direct claim on trading revenue.

When a Solana token launches, its initial liquidity is deposited into a pool, typically on a DEX like Raydium. Pool share is the metric that breaks down who owns what portion of that pooled capital.

Think of it like a pie chart of the liquidity. If the pool holds 1,000,000 tokens and you provide 100,000, your pool share is 10%. This isn't just a static number; it's dynamic. Your share increases if you buy more tokens (adding to the pool) or if others sell (reducing the total pool). It decreases if you sell or if others buy in.

On Spawned, this concept is financially active. A 0.30% fee is taken from every trade. This fee is not burned or sent to a treasury—it's distributed to all current holders, proportional to their pool share. If your pool share is 1%, you earn 1% of that 0.30% fee stream.

4 Reasons Pool Share is Critical

Understanding your pool share is key to making informed decisions in the volatile memecoin space.

  • Price Impact: A holder with a 5% pool share selling their entire position will cause a much larger price drop than a holder with a 0.1% share. This makes large holders 'whales' who can move the market.
  • Fee Earnings: On fee-sharing platforms like Spawned, pool share is your dividend yield. A 2% pool share in a token doing $100,000 in daily volume earns roughly $6 per day from the 0.30% fee (2% of $300).
  • Voting & Governance: In more advanced tokens (Token-2022), pool share can translate to voting power in project decisions, from treasury spends to feature updates.
  • Risk Assessment: A token where one wallet holds 40% of the pool is highly centralized and risky. A healthy, decentralized token has many holders with smaller, balanced shares.

Pool Share Economics: Spawned vs. pump.fun

Where you launch turns pool share from a statistic into a revenue stream.

The platform you launch on defines what your pool share is worth. Here’s a direct comparison using real numbers.

FeatureSpawned.compump.fun
Launch Fee0.1 SOL (~$20)~0 SOL (Bonding Curve)
Creator Fee on Trades0.30%0%
Holder Rewards from Trades0.30% (ongoing)0%
Post-Graduation Fee1% (via Token-2022)N/A
Website BuilderIncluded (saves $29-99/mo)Not Included

The Key Difference: On pump.fun, your pool share only represents potential sell pressure or bonding curve exit. It generates no ongoing income. On Spawned, your pool share is an income-generating asset. From day one, every trade fuels rewards for holders. For a creator with a 10% initial share, a $50,000 trade day puts ~$15 (0.30%) into the reward pool, of which they'd earn $1.50. This creates a tangible reason for holders to keep their pool share, reducing sell pressure.

How to Calculate Your Pool Share (3 Steps)

You don't need complex tools to estimate your position.

Final Take: Why You Must Track Pool Share

Ignore your pool share at your own financial peril. For traders, it's a core risk metric. For creators launching a token, choosing a platform that monetizes pool share—like Spawned with its 0.30% holder rewards—directly increases your token's attractiveness and stability. It transforms holders from spectators into stakeholders with skin in the game. If your goal is a sustainable project, not just a quick pump, prioritize platforms where pool share has ongoing utility and value.

Recommendation: Before launching or investing, always check the pool distribution. Favor tokens and platforms where the economic model rewards holding a share of the liquidity, creating aligned incentives for long-term growth.

How Creators Can Increase Pool Share Value

As a creator, your goal is to make holding a pool share in your token desirable.

  • Launch on a Rewarding Platform: Start on Spawned to activate the 0.30% fee reward from trade one, giving immediate value to each percentage of pool share.
  • Use Token-2022 at Graduation: When moving to a permanent DEX, use Spawned's Token-2022 integration to enable a perpetual 1% fee. This makes the pool share permanently valuable.
  • Promote Holder Benefits: Clearly communicate in your project's messaging that 'X% of every trade goes back to holders.' This marketing turns pool share into a selling feature.
  • Monitor Concentration: Use airdrops or fair launch mechanics to avoid a single wallet holding too large a share initially, which scares off new investors.

Ready to Launch a Token with Valuable Pool Shares?

Your token's economics start with your launchpad choice. Spawned is built to make every holder's pool share meaningful through automatic fee distribution.

  • Launch Fee: Just 0.1 SOL (~$20)
  • Immediate Holder Rewards: 0.30% fee on all trades from launch
  • Full Toolset: Includes an AI website builder at no extra monthly cost

Don't let your token's liquidity be a static number. Make it an engine for holder rewards. Launch your token on Spawned today and build a community where holding a share pays off.

Start Building FreeExplore Projects

Related Terms

AirdropAirdrop CompleteAllocationAllocation CompleteAlphaAlpha CompleteAltcoinAltcoin CompleteAmmAmm CompleteArbitrageArbitrage Complete

Frequently Asked Questions

Not exactly. Your token balance is the raw number you hold. Pool share is that balance expressed as a percentage of the total tokens currently locked in the decentralized exchange (DEX) liquidity pool. If tokens are held in wallets but not in the pool, they don't count toward this calculation until they are traded.

Rewards are automatic. Spawned's smart contract takes a 0.30% fee from every buy and sell transaction. This fee is converted to SOL and distributed proportionally to all holders based on their real-time pool share. You don't need to claim; rewards are added directly to your position.

When you sell tokens back to the liquidity pool, two things happen: 1) Your token balance decreases, and 2) The total number of tokens in the pool also decreases (as you receive SOL in return). Your pool share percentage will drop, and you will stop earning rewards on the sold amount immediately.

pump.fun's model is focused on a zero-fee, bonding curve launch to maximize initial trader participation. Their priority is volume and price discovery during the launch phase, not building long-term holder economics. Spawned's model includes a small fee to fund ongoing incentives, aiming for project sustainability post-launch.

Yes, if other holders sell their tokens. When they sell, the total number of tokens in the liquidity pool decreases. If your holding stays the same, your share of the now-smaller pool becomes a larger percentage. This is a passive increase in share and potential reward earnings.

After a token 'graduates' from Spawned's initial launch pool to a full DEX like Raydium, creators can enable Token-2022 features. This allows for a perpetual 1% fee on all future trades. This fee can be split between project treasury and holders, making pool share valuable for the entire lifespan of the token.

It doesn't directly affect pool share mechanics, but it strengthens the project behind the token. A professional website builds trust, attracts more holders, and increases trading volume. Higher volume means more fees are generated from the 0.30% rate, which increases the absolute value of the rewards paid out to each percentage of pool share.

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