Avoid Low Liquidity Techniques: Build Sustainable Tokens, Not Pumps

Pump.fun's business model relies on volume—specifically, the volume of new token launches. With 0% creator revenue during the initial phase, there's no financial incentive for creators to invest in proper liquidity. The platform benefits from many quick launches, regardless of their longevity. This creates a race to the bottom where the cheapest, fastest launches dominate, at the expense of project sustainability.

Holder rewards create ongoing economic incentives beyond simple price speculation. With Spawned.com's 0.30% distribution, holders earn tokens from trading volume even if the price remains stable. This transforms the calculation from 'when to sell for profit' to 'how long to hold for ongoing rewards.' For example, with $50,000 daily volume, holders collectively earn $150 daily, making early exits less attractive compared to sustained holding.

A minimal launch might cost ~$420 total (0.1 SOL fee + 2 SOL liquidity). A proper launch costs ~$3,020 (0.1 SOL fee + 15 SOL liquidity). The $2,600 difference represents the liquidity buffer that prevents collapse. Consider this: the 'cheap' launch almost certainly fails, losing all $420. The proper launch has a fighting chance to succeed and generate ongoing 0.30% creator revenue, potentially recovering that initial investment quickly.

Adding holder rewards to an existing token requires migration to a new contract or platform that supports reward distribution. This is complex and often requires community approval. It's far better to implement rewards from launch. On Spawned.com, the 0.30% holder reward is built into the token economics from creation, ensuring proper incentives from the first trade.

The Token-2022 standard enables advanced features like transfer fees, which Spawned.com uses for its 1% perpetual fee structure post-graduation. This means after moving to a full DEX like Raydium, your project can continue collecting 1% on all trades to fund development, marketing, and operations. This creates sustainable funding beyond the initial launch phase, unlike traditional tokens that rely solely on initial fundraising.

We recommend at least 500-1,000 genuine community members before token launch. These should be engaged followers interested in your project's utility, not just price speculation. A proper community provides initial trading volume, reduces sell pressure (as they're invested in the project's success), and creates organic growth through sharing. [Learn community building strategies](/use-cases/token/how-to-create-gaming-token-on-solana) for specific token types.

Extremely quickly. Tokens with less than 5 SOL liquidity often fail within 2-24 hours. The pattern is predictable: initial pump from launch excitement, followed by the first wave of profit-taking, which drains the minimal liquidity pool, causing rapid price collapse. Once the price drops 50-70%, remaining holders panic sell, completing the death spiral. This entire cycle can complete in under 48 hours for most low-liquidity launches.