Glossary

Pool Share Explained Simply for Solana Token Creators

noun•Spawned Glossary

Your pool share is your ownership stake in the liquidity pool created for your token. This stake determines your portion of the 0.30% trading fee revenue on each transaction. It's a core metric for understanding your project's financial mechanics and long-term sustainability.

Key Points

  • 1Pool share = your % ownership of the token's liquidity pool.
  • 2Determines your cut of the 0.30% trading fee from every buy/sell.
  • 3Higher share means more fee revenue and greater influence over pool parameters.
  • 4Essential for calculating potential earnings from your token's trading activity.

What Is a Pool Share?

It's your slice of the fee-generating pie.

When you launch a token on a platform like Spawned, a liquidity pool is created. This pool holds both your token and a paired asset (like SOL) to enable trading. Your pool share is your personal percentage ownership of the total Liquidity Pool Tokens (LPTs) that represent a claim on that pool's assets.

Think of it like owning shares in a company that earns a fee on every single trade of your token. If the pool has 1,000,000 LPTs and you hold 100,000, your pool share is 10%. This 10% entitles you to 10% of all trading fees generated.

Why Your Pool Share Matters (For Creators)

Your pool share isn't just a number; it's directly tied to revenue and project health.

  • Fee Revenue: You earn a portion of the 0.30% fee on every trade. A 5% pool share on $1M daily volume means ~$15/day in fees for you.
  • Project Sustainability: This creates a continuous revenue stream to fund development, marketing, and community rewards.
  • Incentive Alignment: Holding a significant share shows commitment to your project's long-term success, building trust with holders.
  • Governance & Control: On some platforms, pool share can influence decisions about pool parameters or fee structures.

How Pool Share Works on Spawned.com

A dual-reward system that pays both you and your community.

Spawned's model is built to benefit creators directly through transparent fee sharing.

The Creator's Cut:

  • Trading Fee: 0.30% on every transaction.
  • Creator Revenue: You receive 0.30% of that fee, proportional to your pool share.
  • Holder Rewards: An additional 0.30% is distributed to all token holders, fostering a loyal community.

Example: Your token does $500,000 in daily volume. The total daily fee generated is $1,500 (0.30% of $500k). If your pool share is 8%, you earn $120 per day from the creator portion. Holders collectively earn another $1,500 daily.

Post-Graduation: After moving from the launchpad, a 1% fee is sustained via Token-2022, ensuring your revenue model continues.

How to Calculate Potential Earnings from Your Pool Share

Use this simple three-step process to estimate your revenue.

Can You Increase Your Pool Share?

Your initial pool share is set at launch, but it can change. Here's how:

  • Providing More Liquidity: You can add more of your token and the paired asset (e.g., SOL) to the pool. This mints new LPTs for you, increasing your share.
  • Buying LPTs on the Market: If Liquidity Pool Tokens are tradeable, you can purchase them, just like buying more shares.
  • Important Note: Adding liquidity requires locking up capital. It's a commitment to the project's liquidity depth.

Common Pool Share Misconceptions

Let's clear up the confusion.

Misconception 1: "My pool share is the same as my token ownership." Reality: No. You own tokens AND a share of the liquidity pool. They are separate assets. Your token holdings don't automatically grant you pool fees.

Misconception 2: "A small pool share means I get nothing." Reality: Even a 1-2% share on meaningful volume generates real revenue. On Spawned, with 0.30% going to creators, 1% of $1M daily volume is still $10/day.

Misconception 3: "The platform takes all the fees." Reality: On Spawned, 0.30% goes to creators (you) and 0.30% goes to holders. The platform's sustainment comes from the 1% fee after graduation.

The Verdict on Pool Share for Crypto Creators

Treat it with the importance it deserves.

Your pool share is a critical financial asset. It transforms your token from a static digital asset into an ongoing revenue-generating business. On platforms like Spawned.com, where a clear 0.30% of all trades is allocated to creators, maximizing and understanding your pool share is directly linked to your project's financial success.

Recommendation: Prioritize launch platforms that offer transparent, creator-friendly fee structures. A model like Spawned's—which dedicates a fixed percentage to creators and another to holders—creates sustainable incentives for everyone involved. When evaluating where to launch, always ask: 'What is my pool share, and what percentage of fees does it entitle me to?'

Ready to Build Your Pool Share?

Understanding pool share is the first step. The next step is launching a token with a model designed to make that share valuable.

Launch on Spawned.com to secure your 0.30% creator fee from day one, reward your holders with an additional 0.30%, and use the integrated AI website builder—saving you monthly costs from the start.

Launch Fee: 0.1 SOL (~$20). Start building your sustainable creator revenue today.

Launch Your Token on Spawned.com

Start Building FreeExplore Projects

Related Terms

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Frequently Asked Questions

No, the structure varies significantly. Some platforms take all fees, while others share them. Spawned.com allocates 0.30% of every trade directly to the creator pool and 0.30% to holders, making the creator's pool share concretely valuable. Always check the fee distribution model.

Adding more liquidity (both your token and the paired asset like SOL) mints new Liquidity Pool Tokens (LPTs). You receive these new LPTs, which increases your total share of the pool. Your percentage ownership goes up, entitling you to a larger portion of the trading fees.

Yes, it can dilute. If other users add significant liquidity to the pool, the total number of LPTs increases. If you don't add proportionally, your share of the total becomes a smaller percentage. Your absolute number of LPTs stays the same, but your slice of the fee pie gets smaller.

Not necessarily. It's a function of share percentage and trading volume. A 2% pool share on a token with $5M monthly volume on Spawned would earn you about $300/month from the creator fee pool (0.30% of volume). Focus on building volume alongside a fair share.

They are completely separate. Token ownership means you hold the actual meme or utility token. Pool share means you own a piece of the liquidity pool that facilitates trading of that token. The pool is a separate entity that earns fees, and your share is a claim on those fees and the underlying pooled assets.

It provides predictable, transparent revenue. Unlike platforms with zero creator fees, Spawned guarantees you earn 0.30% of every trade, distributed according to your pool share. This creates a direct, sustainable income stream from your project's activity, paid in SOL.

Liquidity Pool Tokens are receipt tokens you receive when you deposit assets into a liquidity pool. They prove your share of that pool. On Spawned, your initial creator pool share is represented by LPTs. You can often stake, trade, or use these LPTs in other DeFi protocols.

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