How Token Graduation Actually Works

What is Graduation?

Graduation is when a token transitions from Spawned's bonding curve to a real liquidity pool on Raydium. This happens automatically when certain conditions are met.

Trigger Conditions

Graduation occurs when:

• 85 SOL collected in bonding curve reserves
• 800M tokens sold (80% of supply)

When both conditions are met, anyone can call the graduation instruction.

What Happens During Graduation

Step 1: Bonding Curve Closes

• No more buys/sells through curve
• Price locked at final curve price

Step 2: Liquidity Pool Creation

• 200M tokens (20% supply) paired with collected SOL
• Concentrated liquidity pool on Raydium
• LP tokens burned (locked forever)

Step 3: Trading Resumes

• Open market trading on Raydium
• Standard DEX fees apply
• Anyone can trade

Fee Changes After Graduation

Before graduation:

• 1.25% transfer fee (Token-2022)
• Split: 0.65% platform, 0.30% creator, 0.30% holders

After graduation:

• Transfer fee remains (Token-2022 native)
• Raydium also charges swap fees
• Creator and holder rewards continue

Price Impact

Graduation typically causes short-term volatility as:

• Arbitrage bots normalize prices
• New liquidity providers enter
• Traders who waited for DEX access buy in

Long-term, having real liquidity depth stabilizes price.

LP Token Handling

Spawned burns LP tokens, meaning:

• Liquidity is permanently locked
• No rug pull possible
• Pool exists forever

Technical Flow

check_graduation_conditions()
├── verify_sol_threshold()
├── verify_token_threshold()
└── trigger_graduation()
    ├── close_bonding_curve()
    ├── create_raydium_pool()
    ├── add_liquidity()
    └── burn_lp_tokens()

After Graduation

Your token is now:

• Listed on Raydium
• Tradeable on aggregators (Jupiter, etc.)
• Eligible for other DeFi (lending, etc.)
• Still collecting transfer fees