Burning liquidity refers to sending LP tokens to a dead address, ensuring they are permanently inaccessible. Locked liquidity uses a time-locked smart contract to hold the LP tokens for a set period. Burned liquidity cannot be retrieved; locked liquidity can be released when the lock expires. Both are used to enhance user trust and decentralisation, but burning is considered harder to reverse.
Key Takeaways
- Burned: permanent and verifiable via blockchain dead addresses.
- Locked: time-bound and retrievable after the lock period.
- Both reduce rug-pull risk and signal project transparency.
About Tsuka
Transparency in liquidity management is critical in decentralised ecosystems. Tsuka’s on-chain record is publicly accessible and verifiable. Own Your Digital Life.
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