What does LP burned mean in crypto?

LP burned means the liquidity provider (LP) tokens for a crypto token's trading pool have been sent to an address nobody controls. Whoever holds LP tokens can withdraw the pool's funds, so burning them makes that liquidity permanent. Token scanners and trading sites show the label to tell buyers that the pool's creator cannot simply empty it.

What does burn liquidity mean?

On a decentralized exchange, a new token usually trades against a liquidity pool holding the token and an established coin. Uniswap's documentation explains that depositors receive liquidity tokens in proportion to their share, and burn those tokens to withdraw their share of the pool plus fees. The tokens are also transferable. More detail is in what are LP tokens.

Burning liquidity flips that logic. Instead of redeeming the LP tokens, the creator sends them to a dead address, a wallet with no usable key, the same method used in a general token burn. The pool keeps working for traders, but the funds behind those burned LP tokens can never be redeemed.

Some platforms do this by design. The Block reported in July 2026 that about 20% of the liquidity moved into a PumpSwap pool when a Pump.fun token graduated had been permanently locked inside that pool, which Pump.fun called dead liquidity, until its BOOST update redirected it.

What is locked liquidity vs burned liquidity?

Token analytics firm Mobula's docs sort a pool's LP tokens into four groups:

• Burned. Sent to a dead address and permanently out of reach.
• Locked. Held by a locker protocol, such as Unicrypt, PinkLock or Team Finance, for a set period.
• Held in an unknown contract. Mobula says these may need investigation.
• Unlocked. Sitting in an ordinary wallet that can remove the liquidity at any time.

A lock is temporary, so the end date matters as much as the label. Wording also varies between platforms. Raydium's Burn and Earn feature permanently locks a liquidity position while the creator keeps a transferable Fee Key NFT that collects trading fees, and its docs note that the LP tokens are locked, not literally burned.

Does LP burned prevent a rug pull?

It blocks one method, a creator draining the pool, which is a classic rug pull. It does not cover others. Mobula's security checks also look at whether new supply can be minted, whether ownership has been renounced, whether the token is a honeypot that blocks selling, sell taxes and how concentrated the top holders are. A team holding a large share of supply can still sell into a burned pool and crash the price.

On Solana, the matching check is the token's authorities. Solana's docs say a mint account can carry a mint authority and a freeze authority, and setting one to None permanently removes it. Checking the burned percentage, not just the label, also matters, since a partial burn leaves the rest withdrawable.