What happens to Liquidity when creating a token?

Is LP completely burned/locked?

No, the liquidity pool (LP) tokens are not permanently burned. Instead, they are held in a multisig wallet managed by our team. This allows us to retain control over the LP tokens, ensuring we can move them in the future if necessary—whether to a new decentralized exchange (DEX) or an upgraded version of the Sundaeswap protocol.

No individual user can access these funds, and the JPG/Rocket team will never sell LP tokens. This guarantees that the LP tokens are safe from external access or manipulation.

We chose not to send the LP tokens to a burn address or lock them in a smart contract because we believe that doing so could limit future opportunities for the growth and improvement of the original team/token. Retaining the flexibility to upgrade or relocate liquidity is vital to ensuring long-term success. (One example of this is old tokens permanently locked in MinswapV1 contract, causing chain load/speed issues, blockchain congestion etc)

With over three years of experience in the Cardano ecosystem, the JPG/Rocket team is well-established and trusted. Rest assured, the Rocket LP tokens are secure under our management.