Fucking Rug Pulls
Introducing Our Concept of Lockers
In recent discussions within our community—and in light of events shaking both the main coin market and the meme coin market—we have been rethinking the traditional models surrounding token distribution and the risks of rug pulls. While token unlocks and sales are typically anticipated, the problem often lies not in the act of selling itself, but in the opacity surrounding token sales by creators.
The Problem with Conventional Vesting
Historically, many meme tokens and similar assets have relied on vesting schedules controlled by a single organization or creator. Although these schedules are public and largely predictable, they do not necessarily prevent problematic behavior. Creators may still liquidate large portions of their holdings on short notice, thereby eroding trust and destabilizing prices. The core issue is that sudden, undisclosed token sales can feel deceptive to token holders—even when the underlying vesting schedule is known.
We think that the meme market needs a new solution.
Introducing Lockers: A New Paradigm
To address this, we propose a system of lockers. The fundamental idea is simple: when a creator is allocated tokens (for example, 20% of the total supply), those tokens are locked in an on-chain vault. Rather than relying on a preset vesting schedule, the creator must explicitly pre-announce each sale via a transaction on-chain. For instance, if a creator wishes to withdraw 1% of the tokens, they must submit a transaction that schedules the withdrawal for a future date—say, six days later. This pre-announcement mechanism ensures full transparency regarding when and how many tokens will be sold.
How Lockers Work
Token Locking: All tokens allocated to the creator are immediately transferred into a designated on-chain contract—the locker.
Pre-Announcement Requirement: Instead of an automatic vesting schedule, the creator must actively announce their intent to sell a specified percentage of tokens. This announcement, recorded on-chain, defines the exact timing and amount of tokens that will become available.
Enforced Time Limits: The locker is designed to enforce a mandatory waiting period (for example, a two-day notice) before any unlocked tokens can be sold. This delay provides traders with sufficient time to assess market conditions and adjust their positions accordingly.
Transparency: All details—such as the amount of tokens locked, the withdrawal schedule, and the pre-announced sale amounts—are fully transparent and verifiable on-chain, reducing uncertainty and increasing market confidence.
Mitigating Rug Pulls Through Transparency
The core issue behind rug pulls is not the act of selling tokens, but rather the lack of disclosure about when these sales will occur. With the locker system, creators are compelled to reveal their actions well in advance. This approach:
Reduces Uncertainty: Traders are no longer left in the dark about large, impending sell-offs.
Promotes Gradual Sales: Creators are incentivized to spread out their sales over time, as abrupt, large-volume transactions would be immediately apparent and could lead to rapid market corrections.
Enhances Trust: By enforcing transparency, the locker system aligns the interests of creators and the community, significantly reducing the risk of deceptive practices.
Even in scenarios where a high-profile individual might be tempted to sell tokens rapidly while streaming live, the locker mechanism ensures that their intended sales are pre-announced. Consequently, the community is better informed, and the risk—or even the perception—of a rug pull is minimized.
Expanded Technical Feasibility on Solana
From a technical perspective, the implementation of lockers is both straightforward and robust. The system leverages Solana's native capabilities, particularly its inherent ability to track time with high precision. Here are some key technical details:
Reliable Timekeeping: Solana's blockchain incorporates a reliable timekeeping mechanism through its built-in clock sysvar. This feature provides each transaction with a timestamp derived from the cluster’s slot production, ensuring that time-bound logic within smart contracts is enforced accurately.
Smart Contract Implementation: The locker contracts can be developed in Rust using Solana’s programming model. These contracts are designed to manage token custody and enforce pre-announcement rules, such as mandatory waiting periods before tokens can be withdrawn. The simplicity of the locker logic also facilitates rigorous auditing and testing.
On-Chain Enforcement: By utilizing Solana’s on-chain time verification, the locker system does not require any off-chain intervention. All critical functions—including locking tokens, recording pre-announcements, and enforcing withdrawal delays—are executed deterministically within the blockchain’s runtime environment.
Auditability and Security: Given that the contracts are simple and transparent, they can be easily audited by independent security experts. Similar time-locking mechanisms have been employed in other secure token projects, further reinforcing the technical soundness of this approach.
The combination of these technical features ensures that the locker system is not only feasible but also reliable in enforcing transparency and mitigating the risks associated with sudden token dumps.
Conclusion
The locker system represents a promising solution to one of the most persistent issues in the meme token space: the lack of transparency in token sales. By mandating that creators pre-announce their sales and by locking tokens in a contract that enforces a delay before withdrawal, we create an ecosystem where trust is built into the very fabric of token distribution. This mechanism discourages sudden, destabilizing dumps and reassures the community that all token movements are transparent and accountable.
As we continue to refine this concept, further technical documentation and implementation details will be made available on GitHub. For now, this proposal serves as an initial step toward establishing a more reliable and fair market for digital assets.
Stay tuned for more updates as we work on integrating this system into our platform and explore innovative ways to secure and empower our community.
Full loom video: