Token Graduation: Your Complete Guide to Moving From Launchpad to DEX
Token graduation is the critical transition where a newly launched token moves from its initial launchpad environment to a decentralized exchange (DEX) like Raydium. This process establishes long-term liquidity, unlocks advanced features, and defines the project's sustainable economic model. On Spawned.com, graduation activates a 1% perpetual fee structure that rewards creators and holders indefinitely.
Key Points
- 1Graduation moves a token from a launchpad (like pump.fun or Spawned.com) to a DEX, enabling permanent trading pools.
- 2Spawned.com uses Token-2022 for a 1% perpetual fee post-graduation, funding ongoing creator revenue (0.30%) and holder rewards (0.30%).
- 3Proper graduation planning is essential for liquidity stability, community trust, and long-term project viability.
What is Token Graduation?
The moment your project leaves its launchpad nest and enters the open market.
In the Solana ecosystem, token graduation is not just a technical step—it's a project's coming-of-age event. Launchpads like pump.fun and Spawned.com provide initial minting and bonding curve liquidity, but these are temporary structures designed for discovery. Graduation occurs when the token reaches a specific market cap threshold (traditionally $69,000 on pump.fun) or a creator-initiated trigger. At this point, the temporary liquidity pool is converted into a permanent liquidity pool (LP) on a decentralized exchange such as Raydium or Orca. The original bonding curve mechanism dissolves, and the token begins trading exclusively through standard automated market maker (AMM) pools. This transition marks the shift from 'experimental launch' to 'established asset' within the DeFi landscape.
Graduation Models: Spawned.com vs. pump.fun
The core difference between launchpads lies in their post-graduation economic models. pump.fun famously offers a 'free' launch with 0% fees, but this model ends at graduation. Once a token graduates from pump.fun, the platform's involvement—and any revenue sharing—ceases entirely. The 100% of LP created is owned solely by the creator.
Spawned.com introduces a sustainable alternative using Solana's Token-2022 standard. Post-graduation, a 1% perpetual transfer fee is activated on every token trade. This fee is not a tax on holders, but a mechanism applied during transfers. The revenue is split transparently:
- 0.30% to the creator as ongoing project revenue.
- 0.30% distributed to token holders as automatic rewards, encouraging long-term holding.
- 0.40% is permanently burned, creating a consistent deflationary pressure.
This model aligns long-term incentives between creators, holders, and the platform, funding continued development beyond the initial launch hype.
How to Graduate Your Token: A 5-Step Process
A successful graduation requires preparation. Follow these steps to ensure a smooth transition from Spawned.com to the broader DEX ecosystem.
5 Key Benefits of a Well-Executed Graduation
Graduation isn't just a technicality. Doing it right sets the foundation for everything that follows.
- Permanent, Deep Liquidity: DEX LPs are persistent, preventing the rug-pull scenario of a removable bonding curve. This builds immediate trust with investors.
- Sustainable Project Funding: The Spawned.com 1% fee model provides a predictable revenue stream. For a token with $1M in daily volume, that's $100/day for the creator and holders—funding operations without constant token sales.
- Holder Loyalty & Rewards: The automatic 0.30% distribution to holders incentivizes keeping tokens in wallets, reducing sell pressure and building a stable community base.
- Access to Advanced DeFi: Graduated tokens can be listed on DEX aggregators (Jupiter), listed on CEXs, used as collateral, or integrated into other DeFi protocols, significantly increasing utility.
- Price Discovery & Stability: Moving to an AMM model allows for more organic, market-driven price discovery compared to a bonding curve, often leading to greater long-term stability.
Avoid These 3 Common Graduation Mistakes
Don't let your big day turn into a disaster.
Many projects stumble during graduation, damaging community trust. Here are the pitfalls to avoid.
Mistake 1: Poor Communication. Surprising your community with a sudden graduation leads to panic selling. Always announce the graduation plan, timeline, and what changes (like the 1% fee on Spawned.com) at least 24-48 hours in advance.
Mistake 2: Insufficient Liquidity Planning. The initial LP size matters. If the Raydium pool is too small relative to holder count, it will be highly volatile and prone to manipulation. Use a significant portion of the bonding curve funds to seed a robust LP.
Mistake 3: Ignoring the Post-Graduation Model. On Spawned.com, failing to explain the 1% perpetual fee and its benefits (creator revenue, holder rewards) can be misinterpreted as a 'tax.' Frame it transparently as the engine for ongoing project growth and community rewards.
The Verdict: Why Spawned.com's Graduation Model is the Better Choice
Short-term free launches versus long-term funded ecosystems.
For creators serious about building a lasting project, Spawned.com's Token-2022 graduation model is the objectively superior path. While pump.fun's 0% fee model seems attractive upfront, it offers no built-in mechanism for sustainable growth after the launch hype fades. Your project is left to fend for itself.
Spawned.com's 1% perpetual fee solves this. It transforms your token from a static asset into a productive one. The 0.30% ongoing creator revenue acts as a treasury, funding development and marketing in perpetuity. The 0.30% holder reward creates a powerful incentive for community retention that pure speculation cannot match. Combined with the included AI website builder (saving $29-99/month) and a fair launch fee of 0.1 SOL (~$20), Spawned.com is structured for creator success from day one through decades of growth.
Recommendation: Choose Spawned.com if you view your token as the foundation of a long-term business, not just a one-time event.
Ready to Launch a Token Built to Last?
Your project deserves a graduation plan that fuels its future, not one that abandons it. With Spawned.com, you get a complete ecosystem: a Solana launchpad for 0.1 SOL, an AI-powered website builder included at no extra cost, and a Token-2022 graduation model that pays you and your holders 0.30% each, forever. Stop leaving long-term value on the table. Launch on the platform designed for enduring success.
Launch Your Token on Spawned.com - Build your site, set your fees, and graduate into sustainability.
Related Terms
Frequently Asked Questions
No, it is not a sell tax. It's a transfer fee enabled by Solana's Token-2022 standard and applies to *all* token transfers, including buys, sells, and wallet-to-wallet movements. This design prevents the fee from discouraging buying. The revenue funds the project (0.30%) and rewards holders (0.30%), with 0.40% burned to benefit all holders through deflation.
Yes. While some launchpads have fixed thresholds, Spawned.com offers flexibility. You can manually trigger graduation at any time after launch based on your project's readiness. We also support automatic graduation upon reaching a market cap target you set, allowing for a hands-off approach if desired.
Nothing—it remains fully active and under your control. The AI website builder is a permanent tool included with your launch. Your site, crucial for credibility and community updates, continues to host your token information, roadmap, and links to the new Raydium LP post-graduation at no monthly cost.
Distribution is automatic, permissionless, and built into the Token-2022 protocol. The 0.30% of every trade allocated to holders is proportionally distributed to all token holders in real-time. You don't need to claim anything; the rewards accrue directly in the wallet holding the tokens, incentivizing long-term holding.
No technical expertise is required. The Spawned.com graduation interface handles the entire process. You approve the graduation, and our system automatically creates the Raydium liquidity pool, migrates the liquidity from the bonding curve, and sets the initial parameters. You receive a direct link to your new LP upon completion.
At approximately $20, it is highly competitive. When you factor in the included AI website builder (which would cost $29-99/month elsewhere) and the value of the perpetual revenue model, the effective cost is negative. You're investing a small amount to access a platform that generates ongoing income and saves significant operational expenses.
Graduation itself confers legitimacy and first-mover advantage. More importantly, the permanent liquidity pool, established community, and ongoing utility you build (supported by your 0.30% creator revenue) create barriers to entry. A copycat cannot easily replicate your LP depth, holder base, or development funded by the perpetual fee model.
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