{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "liquidity-locks-burned-lp",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/liquidity-locks-burned-lp/",
  "collection": "defi",
  "title": "Liquidity locks and burned LP tokens: what the claim actually proves",
  "description": "Understand what locking or making LP receipts inaccessible can restrict, and what it leaves outside that protection.",
  "aliases": [
    "locked liquidity burned LP token meaning",
    "what a liquidity lock does not protect"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:18:00.092Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "A liquidity lock restricts access to specified LP receipts until its conditions permit withdrawal. Making those receipts permanently inaccessible can remove the holder’s ability to redeem that portion of the pool. Neither action removes the underlying token’s administrative powers or guarantees its market value. Check the exact pool, locked amount, duration and contract rules.",
    "claimId": "liquidity-locks-burned-lp-quick-answer",
    "sourceIds": [
      "x425-defi-uncx-lock",
      "x425-defi-v2-pair-code",
      "x425-defi-oz-access"
    ]
  },
  "keyFacts": [
    {
      "label": "Receipt claim",
      "value": "Uniswap v2 redemption uses LP tokens to withdraw a proportional asset claim.",
      "sourceIds": [
        "x425-defi-v2-pair-code"
      ],
      "id": "receipt-claim",
      "claimId": "liquidity-locks-burned-lp-fact-receipt-claim"
    },
    {
      "label": "Time lock",
      "value": "The cited locker holds LP tokens until the unlock date.",
      "sourceIds": [
        "x425-defi-uncx-lock"
      ],
      "id": "time-lock",
      "claimId": "liquidity-locks-burned-lp-fact-time-lock"
    },
    {
      "label": "Separate powers",
      "value": "Token minting and transfer restrictions can have their own administrators.",
      "sourceIds": [
        "x425-defi-oz-access"
      ],
      "id": "separate-powers",
      "claimId": "liquidity-locks-burned-lp-fact-separate-powers"
    }
  ],
  "prerequisites": [
    "liquidity-provider-positions"
  ],
  "sections": [
    {
      "id": "example",
      "heading": "A partial lock leaves a partial claim unlocked",
      "sourceIds": [
        "x425-defi-v2-pair-code",
        "x425-defi-uncx-lock"
      ],
      "paragraphs": [
        "Suppose a pool has 1,000 LP tokens and a verified lock holds 700. That accounts for 70% of the receipt supply at that time; it does not say the other 300 cannot be redeemed. New liquidity and fee-related minting can also change the fraction over time.",
        "Verify the pool address and actual lock balance rather than relying on a screenshot of a percentage."
      ]
    },
    {
      "id": "burn",
      "heading": "Two uses of burn can mean opposite things",
      "sourceIds": [
        "x425-defi-v2-pair-code"
      ],
      "paragraphs": [
        "The v2 pair’s burn function is part of ordinary redemption: it destroys LP tokens while returning pool assets. A promotional claim that LP tokens were burned often means sending receipts to an inaccessible address instead. Inspect the actual transfer and contract behavior; the word alone does not prove permanent locked liquidity."
      ]
    },
    {
      "id": "limits",
      "heading": "A lock does not govern the whole token",
      "sourceIds": [
        "x425-defi-oz-access",
        "x425-defi-uncx-lock"
      ],
      "paragraphs": [
        "A token can still have minting, transfer or upgrade permissions outside the LP locker. A genuine lock also has its own implementation and expiry conditions. Even if withdrawal is restricted, ordinary swaps can change the reserves and price. Liquidity locking is one narrow property, not a comprehensive safety certificate."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does a locked LP position guarantee I can sell the token profitably?",
      "answer": "No. It does not guarantee price, token-transfer behavior or sufficient execution for your trade.",
      "sourceIds": [
        "x425-defi-v2-pair-code",
        "x425-defi-oz-access"
      ]
    }
  ],
  "claims": [
    {
      "id": "liquidity-locks-burned-lp-quick-answer",
      "articleSlug": "liquidity-locks-burned-lp",
      "statement": "A liquidity lock restricts access to specified LP receipts until its conditions permit withdrawal. Making those receipts permanently inaccessible can remove the holder’s ability to redeem that portion of the pool. Neither action removes the underlying token’s administrative powers or guarantees its market value. Check the exact pool, locked amount, duration and contract rules.",
      "sourceIds": [
        "source-2601cf7bc26edfa6",
        "source-5651ae58cdcb25c2",
        "source-56dd3f4220f6fea2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-2601cf7bc26edfa6",
          "locator": "Liquidity Lockers"
        },
        {
          "sourceId": "source-5651ae58cdcb25c2",
          "locator": "mint; burn; swap; _mintFee"
        },
        {
          "sourceId": "source-56dd3f4220f6fea2",
          "locator": "Ownership; roles; delayed access"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked versioned Uniswap v2 burn redemption and fee-minting code, UNCX lock description and independent token admin controls.700/1000=70%; ordinary burn redeem differs from inaccessible receipt claim."
        ]
      }
    },
    {
      "id": "liquidity-locks-burned-lp-fact-receipt-claim",
      "articleSlug": "liquidity-locks-burned-lp",
      "statement": "Receipt claim: Uniswap v2 redemption uses LP tokens to withdraw a proportional asset claim.",
      "sourceIds": [
        "source-5651ae58cdcb25c2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-5651ae58cdcb25c2",
          "locator": "mint; burn; swap; _mintFee"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked versioned Uniswap v2 burn redemption and fee-minting code, UNCX lock description and independent token admin controls.700/1000=70%; ordinary burn redeem differs from inaccessible receipt claim."
        ]
      }
    },
    {
      "id": "liquidity-locks-burned-lp-fact-time-lock",
      "articleSlug": "liquidity-locks-burned-lp",
      "statement": "Time lock: The cited locker holds LP tokens until the unlock date.",
      "sourceIds": [
        "source-2601cf7bc26edfa6"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-2601cf7bc26edfa6",
          "locator": "Liquidity Lockers"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked versioned Uniswap v2 burn redemption and fee-minting code, UNCX lock description and independent token admin controls.700/1000=70%; ordinary burn redeem differs from inaccessible receipt claim."
        ]
      }
    },
    {
      "id": "liquidity-locks-burned-lp-fact-separate-powers",
      "articleSlug": "liquidity-locks-burned-lp",
      "statement": "Separate powers: Token minting and transfer restrictions can have their own administrators.",
      "sourceIds": [
        "source-56dd3f4220f6fea2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-56dd3f4220f6fea2",
          "locator": "Ownership; roles; delayed access"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked versioned Uniswap v2 burn redemption and fee-minting code, UNCX lock description and independent token admin controls.700/1000=70%; ordinary burn redeem differs from inaccessible receipt claim."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "x425-defi-uncx-lock",
      "label": "UNCX Network introduction",
      "publisher": "UNCX Network",
      "url": "https://docs.uncx.network/",
      "locator": "Liquidity Lockers",
      "note": "Locker provider explanation; not an endorsement or adoption of safety guarantees.",
      "version": "Documentation retrieved 2026-10-02; hash recorded",
      "checkedAt": "2026-10-02T19:10:58.873Z",
      "contentSha256": "7542c6ceed1296fe8ac3d54ba64d101d017f3ead6e535b95051565ee656dd9c2",
      "recordId": "source-2601cf7bc26edfa6"
    },
    {
      "id": "x425-defi-v2-pair-code",
      "label": "Uniswap v2 Pair implementation",
      "publisher": "Uniswap",
      "url": "https://raw.githubusercontent.com/Uniswap/v2-core/v1.0.1/contracts/UniswapV2Pair.sol",
      "locator": "mint; burn; swap; _mintFee",
      "note": "LP redemption authority and reserve accounting.",
      "version": "Uniswap v2-core v1.0.1",
      "checkedAt": "2026-10-02T18:53:23.210Z",
      "contentSha256": "43a5421b31415868367b62bfa161ca10bcee03778873faad905f5a3e2cce9cbd",
      "recordId": "source-5651ae58cdcb25c2"
    },
    {
      "id": "x425-defi-oz-access",
      "label": "Access Control",
      "publisher": "OpenZeppelin",
      "url": "https://docs.openzeppelin.com/contracts/5.x/access-control",
      "locator": "Ownership; roles; delayed access",
      "note": "Privileges beyond a locked LP position.",
      "version": "Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded",
      "checkedAt": "2026-10-02T18:53:23.338Z",
      "contentSha256": "64d4904044619055e92ed628892df0be1db2aec6a37ccd1c14384b4348211c80",
      "recordId": "source-56dd3f4220f6fea2"
    }
  ],
  "related": {
    "articles": [
      "identifying-dex-pools",
      "rug-pulls-vs-exploits",
      "protocol-upgrades-and-admin-powers",
      "borrowed-governance-power",
      "defi-cover-claims"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “Liquidity locks and burned LP tokens: what the claim actually proves.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/liquidity-locks-burned-lp/"
}