Tokenomics & LP Lock

Powering Fairness, Loyalty, and Real Utility

At the core of every launch on DeFive is a structured tokenomics and liquidity strategy — one that supports real fundraising, protects buyers, and strengthens the entire ecosystem through $FIVE utility.

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🎯 1. Token Allocation for Launch Rounds

Projects launching via DeFive commit a predefined portion of their total token supply to the Launchpad.

• Typically between 5–15% of the total supply is allocated for the launch.

• This allocation is split across the Genesis and Momentum rounds.

• The exact percentage and distribution are customized based on the project’s tokenomics, but always transparently published ahead of launch.

To ensure quality and accountability:

• If a project team’s personal token allocation exceeds 10%, then KYC verification is mandatory.

• This helps filter unserious teams and reduce risk of bad actors.

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🔁 2. Real Fundraising, Not Just Token Swapping

Unlike many launch models that rely on speculative token-to-token sales, DeFive ensures projects raise stable assets that can support real-world development.

• Genesis Round: Participation is in USDC only — providing clean, stable liquidity.

• Momentum Round: May support USDC, $S, or staked $S (project-dependent).

• These assets flow to the project as real capital, allowing serious teams to fund development, liquidity, and operations.

This model ensures that launcpad is not a pump-and-dump machine — but a real bridge to growth for projects building on Sonic.

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🔥 3. Buyback and Burn Mechanism

Here’s where DeFive turns fundraising into ecosystem value.

• A portion of the raised funds are allocated to the platform.

• These funds are:

  • Converted into $FIVE via open-market buybacks

  • Burned permanently, removing supply and creating deflationary pressure.

  • Optionally, a portion can be used to bootstrap staking rewards for the launched token (i.e., creating a launch pool or farming opportunity).

This creates a circular value system where every launch benefits not just the project, but the long-term health of $FIVE and veFIVE holders.

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🔐 4. Liquidity Pool Locking: Rug-Proof by Default

One of the most common community fears is: “What if they launch, dump tokens, and vanish?”

DeFive has a built-in safeguard:

• At least 10% of the raised funds are required to be used for creating a liquidity pool for the token.

• This liquidity is:

  • Locked via smart contract for a minimum of 6 months.

  • Managed transparently, with clear details visible to the public.

This ensures:

• The token has a healthy, tradeable market post-launch.

• The team cannot pull liquidity and run.

• Buyers are protected from typical post-launch volatility and scams.

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🧠 Summary: Built to Strengthen, Not Drain

Structures aren’t an afterthought — they’re the engine of sustainability:

Component	Purpose	Who Benefits
Token Allocation	Controlled supply for launch	Users (fair access)
USDC Fundraising	Real development funds	Projects
Buyback & Burn	$FIVE deflation	DeFive community
LP Locking	Rug protection	Users + Ecosystem trust