Use Case

Fix Rug Pull Risk: A Concrete Strategy for Token Creators

Rug pull risk destroys projects before they begin. A structured strategy using the right launchpad can remove this barrier. This guide details a method to fix rug pull risk using built-in platform protections, economic incentives, and post-graduation security.

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Key Benefits

Use a launchpad with a 0.30% creator fee and 0.30% holder rewards to align long-term incentives.
Graduate to Token-2022 for enforced 1% perpetual fees, preventing sudden liquidity removal.
Include a free AI website builder to demonstrate legitimacy and save $29-99/month.

The Problem

Traditional solutions are complex, time-consuming, and often require technical expertise.

The Solution

Spawned provides an AI-powered platform that makes building fast, simple, and accessible to everyone.

Why Rug Pull Risk is the #1 Creator Problem

The fear isn't just about losing money—it's about never getting a chance.

Rug pulls aren't just a scam; they're a fundamental failure of trust that prevents legitimate projects from starting. When potential buyers see a new token, their first question is about the developer's exit strategy. This skepticism creates a massive barrier to entry, even for creators with honest intentions. Traditional launchpads like pump.fun, with a 0% creator fee, inadvertently incentivize the 'pump and dump' model because creators have no ongoing reason to maintain the project. Your strategy to fix rug pull risk must address this incentive structure head-on.

The 3-Part Strategy to Fix Rug Pull Risk

This strategy moves beyond promises to built-in platform mechanics that make rug pulls economically illogical and technically harder to execute.

  • Built-In Economic Alignment: Launch on a platform that provides creators with 0.30% from every trade. This creates a perpetual, passive income stream, making it more profitable to nurture a growing community than to abandon it. Simultaneously, dedicate 0.30% of every trade to holder rewards, directly benefiting your community.
  • Post-Launch Security Upgrade: Plan to graduate your token to the Token-2022 program. This allows you to implement a 1% transfer fee that is enforced on-chain. This fee is perpetual and cannot be removed by the creator, acting as a powerful trust signal and a continuous revenue source that discourages pulling liquidity.
  • Instant Legitimacy Tools: Use an included AI website builder to create a professional project hub immediately. This demonstrates commitment, provides a home for your community, and saves the typical $29-99/month cost of a basic Web3 hosting service.

Launchpad Comparison: Incentive Structures

Your launchpad's economics are your first line of defense.

The platform you choose dictates the incentives you and your holders face. Here’s how a strategy-focused platform compares to a volume-focused one.

FeatureStrategy-Based Platform (e.g., Spawned)Volume-Based Platform (e.g., pump.fun)
Creator Fee0.30% on every trade (ongoing incentive)0% (no ongoing incentive)
Holder Rewards0.30% on every trade (built-in)Not standard
Post-Graduation Fee1% perpetual via Token-2022 (enforced)Not applicable
Upfront Cost0.1 SOL ($20) launch feeBonding curve model
Website BuilderIncluded AI tool (saves $29+/mo)External cost required

The key difference is sustainable incentive alignment. A 0% fee model pushes creators towards a single exit event. A 0.30% model rewards building a lasting, trading ecosystem.

Step-by-Step: Implement Your Rug Pull Risk Fix

Turn strategy into action.

Follow these concrete steps to launch with a trust-first strategy.

  1. Define Your Tokenomics: Before launch, decide how you will use the 0.30% creator fee. Will it fund development, marketing, or liquidity? Transparency here builds trust. Plan for your Token-2022 upgrade from day one.
  2. Build Your Project Hub: Use the integrated AI website builder. Create pages for your story, tokenomics, roadmap, and social links. A live website before launch is a powerful trust signal that few creators provide. See how gaming tokens use this.
  3. Launch with Fees Enabled: Set up your token with the 0.30%/0.30% fee structure active from the first trade. Communicate this clearly to your community—it's a feature, not a bug. It shows you're here for the long term.
  4. Communicate the Roadmap: Announce your plan to graduate to Token-2022 and implement the enforced 1% perpetual fee. Frame this as a commitment to your holders' security.
  5. Execute the Graduation: Once your token reaches its graduation threshold, migrate to Token-2022. This locks in the permanent fee structure, providing the ultimate technical safeguard against a rug pull.

Verdict: The Most Effective Way to Fix Rug Pull Risk

The most effective strategy to fix rug pull risk is to use a launchpad designed to remove the incentive for a rug pull entirely. A platform that provides a 0.30% creator fee aligns your success with the token's long-term health. Adding a 0.30% holder reward and a clear path to a 1% enforced perpetual fee (via Token-2022) builds multiple layers of trust. This combination, paired with professional tools like an AI website builder, addresses the core psychological and economic drivers of rug pulls. It transforms suspicion into a structured value proposition for your community.

Ready to Launch with a Trust-First Strategy?

Build trust from your first line of code.

Stop letting rug pull fear stall your project. Launch on a platform where the economics are built to support long-term growth, not quick exits.

Launch your token with a concrete rug pull risk strategy today.

  • Cost: 0.1 SOL launch fee (~$20).
  • Benefit: Gain 0.30% fee on all trades, provide 0.30% to holders, and get a free AI website builder.
  • Future: Secure your project with a planned upgrade to Token-2022's 1% perpetual fees.

This is how you build a real project, not just another token.

Related Topics

Frequently Asked Questions

Transparent, reasonable fees can actually encourage buying. A 0% fee signals the creator has no long-term stake, which is a red flag. A 0.30% fee demonstrates the creator is invested in the token's ongoing trading volume and health. It aligns creator success with holder success, which is a stronger foundation for trust.

The Solana Token-2022 program allows for enforced transfer fees. When you graduate your token, you can set a fee (e.g., 1%) that is automatically taken from every transfer and sent to a designated wallet. Crucially, this fee authority can be permanently revoked or set to a immutable destination. This means the creator cannot later remove this fee, creating a permanent, on-chain guarantee of continuous project funding and a disincentive to drain liquidity.

It provides immediate legitimacy at zero extra cost. A professional website is the first thing potential investors look for. Having one ready at launch, built with an AI tool included in the 0.1 SOL fee, shows serious intent and saves you $29 to $99 per month on external website services. It's a practical tool that directly counters the 'anonymous dev' red flag.

Yes, absolutely. A fair launch is about equal early access, not zero fees. You can launch with no pre-sale and open bonding curves while still using the 0.30%/0.30% fee structure. This strategy makes a fair launch more sustainable by giving the creator a reason to keep promoting and developing the project after the initial launch phase ends.

The launchpad automatically distributes 0.30% of the value of every trade to all token holders proportionally. This happens on-chain with each transaction. It means holders earn a small yield simply by holding, which encourages long-term holding (reducing sell pressure) and directly shares the project's trading activity success with the community.

The specific mechanics described—like the Solana Token-2022 program and integrated Solana launchpad—are for the Solana ecosystem. However, the core principles of aligning creator fees, planning for on-chain enforced fees, and using legitimacy tools are universal. For other chains, you must seek platforms with similar incentive structures. [Compare approaches on different networks](/use-cases/token/how-to-create-gaming-token-on-ethereum).

The strategy is designed to incentivize *creating* volume. The 0.30% creator fee motivates you to build utility, community, and marketing to drive trading activity. Unlike a model where you profit only from an initial pump, this model rewards sustained effort. The free website builder helps you create the content and hub needed to attract and retain that activity over time.

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