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 entire 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.

Yes, in the sense that no individual user will ever have access to these funds, and no LP tokens will ever be sold by the JPG/Rocket team. 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 for the original team/token. Retaining the flexibility to upgrade or relocate liquidity is key to ensuring the long-term success. (One example of this is old tokens premantently 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.