Glossary

Pool Share Explained: The Core Metric for Token Liquidity

noun•Spawned Glossary

Pool share is the percentage of a token's total supply that is paired with a base currency (like SOL) in a liquidity pool. It directly determines a token's price stability, market depth, and resistance to volatility. For creators launching a token, understanding and managing pool share is essential for a successful and sustainable market entry.

Key Points

  • 1Pool share is the % of your token's supply locked in a liquidity pool with a base currency (e.g., SOL).
  • 2A higher initial pool share (e.g., 50-70%) provides greater price stability and reduces volatility.
  • 3It's a primary factor in calculating your token's starting price: Price = (Pool SOL Value) / (Tokens in Pool).
  • 4On Spawned, your 0.1 SOL launch fee directly funds this initial liquidity pool, aligning platform and creator success.

What is Pool Share?

The foundation of every tradable token's market.

In simple terms, pool share refers to the portion of a cryptocurrency token's total circulating supply that is deposited into a decentralized liquidity pool. This pool is typically a trading pair, such as YOURTOKEN/SOL, on a decentralized exchange (DEX).

The pool holds two assets in a 50/50 value ratio. If you create a pool with 1 SOL (worth ~$150) and your new token, you must deposit an equivalent $150 worth of your tokens. The quantity of your tokens needed to reach that $150 value is what determines the pool share percentage. If your total supply is 1,000,000 tokens and you deposit 700,000 tokens to match 1 SOL, your initial pool share is 70%.

This locked liquidity is what allows traders to buy and sell your token instantly. The pool's automated market maker (AMM) algorithm uses these reserves to set the price and execute swaps.

How Pool Share Works: A Step-by-Step Example

Let's walk through a real example using a launch on Spawned to see pool share in action.

Why Pool Share Matters for Creators

Pool share isn't just a technical detail; it's a strategic variable that impacts your token's entire market behavior.

  • Price Stability & Volatility: A higher pool share means more tokens are locked, making it harder for a single large trade to drastically move the price. A pool share of 5% is highly volatile; 50% is significantly more stable.
  • Market Depth & Trust: A substantial liquidity pool signals to potential buyers that they can enter and exit positions without massive price impact. This builds trust and encourages trading.
  • Direct Price Determination: The token's price is derived from the pool's reserves. Price = (Value of SOL in Pool) / (Number of Tokens in Pool). Managing pool share is managing your token's valuation floor.
  • Resistance to Manipulation: Low pool share (e.g., <10%) makes a token vulnerable to 'pump and dump' schemes, where a few holders can dramatically influence the price. A healthy pool share acts as a buffer.

Spawned's Approach vs. Common Launchpads

How initial liquidity strategy defines your launch.

Different platforms handle initial liquidity and pool share differently, which significantly affects creator and holder outcomes.

AspectTypical Launchpad (e.g., pump.fun model)Spawned's Model
Initial Liquidity SourceBonding curve; liquidity is built slowly from buyer funds.Direct 0.1 SOL fee from creator funds the immediate Raydium pool.
Initial Pool ShareStarts at 0% and increases as the bonding curve fills. Can be low and volatile initially.Immediate, concrete pool share (e.g., 15-25% based on supply) from moment one.
Creator CostOften just minting fee. No direct liquidity provision.0.1 SOL fee directly provides the market's foundational liquidity.
Market StartGradual, price discovery via bonding curve.Instant, with a clear market price and liquidity on a major DEX (Raydium).
Platform IncentiveVolume-based fees after graduation.Aligned from launch: platform revenue (0.30% per trade) requires a healthy, active pool, which a good pool share supports.

The Spawned model ensures your token launches with a real, tradable market from the first second, not a theoretical price on a bonding curve. This upfront investment in pool share establishes immediate credibility.

How to Optimize Your Token's Pool Share

As a creator, you have control over factors that influence your pool share. Here’s how to think about it:

  • Total Supply: A smaller total supply (e.g., 1 million vs. 1 billion) means the same amount of locked tokens results in a much higher pool share percentage, aiding stability.
  • Initial Liquidity Commitment: Consider adding more SOL beyond the 0.1 fee at launch to increase the pool's size and your token's pool share. Doubling the initial SOL quadruples the pool's depth due to AMM math.
  • Vesting & Distribution: Avoid dumping large portions of your non-pooled tokens onto the market quickly. This dilutes the effective pool share and crushes price. Use a measured distribution schedule.
  • Community Incentives: Use protocols that reward users for providing additional liquidity (LP staking). This can grow your pool share organically over time.

The Verdict on Pool Share for Solana Creators

The single most important number for your token's stability.

Do not treat pool share as an afterthought. It is a foundational metric that dictates your token's market integrity.

For creators launching on Solana, especially via a platform like Spawned, aiming for a minimum initial pool share of 15-25% is a strong strategy. This is achievable by managing your total supply and being willing to commit a fair portion of it to the initial liquidity pool. The 0.1 SOL launch fee on Spawned isn't just a cost—it's your seed capital for a functioning market. The resulting pool share creates the stable foundation needed to generate the trading volume that drives the platform's 0.30% creator fee and the 0.30% holder rewards.

A token with negligible pool share is a speculative meme. A token with meaningful pool share is a credible digital asset with a real economy. Your choice directly influences which one you create.

Ready to Launch with Strategic Liquidity?

Understanding pool share is the first step toward a responsible and successful token launch. Spawned is built to help creators get this right from the start.

Launch your token on Spawned today and use our AI website builder to create a professional home for your project—all for the 0.1 SOL launch fee. You'll get:

  • A strategically formed initial liquidity pool on Raydium.
  • A clear, real-time pool share you can track.
  • A pathway to sustainable creator fees (0.30% of all trades).
  • A free, custom website to build your community.

Turn your crypto idea into a credible project with built-in liquidity. Launch on Spawned Now.

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Related Terms

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Frequently Asked Questions

Generally, yes, but with context. A very high pool share (e.g., 90%) means most tokens are locked, limiting circulation and potentially stifling community distribution. It can also mean the creator has committed a large portion of their supply, signaling confidence. The ideal range balances stability with available supply for rewards and marketing, often between 20% and 50% at launch.

Pool share is a percentage of supply, while market cap is price * total supply. They are connected through the liquidity pool's value. The pool's SOL value sets a price floor. A 20% pool share with $1,000 in SOL implies a minimum market cap of $5,000 ($1,000 / 0.20). However, the trading price can rise above this floor based on demand, increasing the market cap while the pool share percentage may decrease if more tokens enter circulation.

Yes, absolutely. Pool share is dynamic. It increases if more tokens are added to the liquidity pool (e.g., through creator deposits or liquidity provider incentives). It decreases if tokens are removed from the pool (e.g., liquidity withdrawal) or if the total circulating supply increases significantly (e.g., from large creator token transfers to wallets) without a corresponding increase in pooled tokens.

Pool share is a metric of liquidity, not ownership. Ownership percentage refers to the share of the total token supply held in a specific wallet. A creator could own 50% of the supply but only have 10% of the total supply (their pool share) locked in the liquidity pool. The remaining 40% of their ownership is held in their wallet and is not providing market liquidity.

Spawned's 0.1 SOL fee creates immediate, tangible liquidity on Raydium, a major DEX. This establishes a real market price and meaningful initial pool share from the first moment. Bonding curves build liquidity slowly from buyer funds, which can result in low initial pool share and higher volatility. The Spawned model provides a more stable and professional launch environment, which benefits creators aiming for long-term project growth and aligns with our fee model based on sustainable trading volume.

First, determine the value of the SOL in your pool (e.g., 0.1 SOL = ~$15). Then, determine the number of your tokens in the pool. If your pool share is 20% of a 1,000,000 token supply, that's 200,000 tokens. The price per token is calculated as: (Value of SOL in Pool) / (Tokens in Pool). So, $15 / 200,000 tokens = $0.000075 per token. This is the starting price the AMM will use.

Upon graduation, the initial liquidity pool created by Spawned remains intact on Raydium. The pool share at that moment becomes the foundation of your token's independent market. The 1% perpetual fee collected by Spawned via Token-2022 is taken from transactions, not from the pooled tokens themselves, so it does not directly reduce the pool share. Maintaining or growing that pool share post-graduation becomes the responsibility of the creator and community.

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