Liquidity Lock vs Token Lock: What Is Actually Protected?

In a pool represented by fungible LP tokens, those tokens account for a share of the pool. Locking 4,000 LP tokens does not mean locking 4,000 units of the project's token, and comparing that LP quantity directly with a project's 50 million token issuance is not a meaningful percentage.

Some pool designs use position NFTs instead of fungible LP tokens. Establish the pool type and the asset held by the locker before interpreting a lock badge. Inspect its relationship to the actual pool; a lock for a different asset offers no protection for the pool you are researching.

Record the pool address, LP mint or position identifier, lock contract, amount, beneficiary, release time and transaction evidence. Check whether cancellation, transfer, upgrade or administrative powers alter the apparent restriction. A multisignature treasury alone is not a time lock.

A displayed locked percentage depends on the provider's denominator, recognised lockers and update time. New liquidity and other liquidity providers can change the percentage. An unexplained remainder is a question to investigate, not proof of either fraud or safety.

A lock does not stop ordinary holders selling through the pool. Trading changes pool balances, so locking an LP position does not freeze a dollar amount of liquidity. It does not guarantee market depth, route availability, price stability, contract security or resale.

Vesting can limit the release of founder tokens according to enforceable terms. It does not remove concentration or prevent selling of already released tokens. Read the actual cliff, release schedule, beneficiary and cancellation permissions rather than relying on a 'vested' label.

This guide is published by PactVerity, the project associated with PVTY. It is not an independent audit. Use the current allocation register and verification dossier to inspect the project's disclosed addresses and evidence. Refresh the lock state and expiry before relying on any earlier announcement.

Keep three questions separate: who controls the treasury, when vested tokens can be released, and what liquidity can be withdrawn. A useful disclosure answers all three without implying that public holders are prevented from selling.