BOB developer has added 100% of the token supply to the DEX liquidity pool and implemented a high-level security mechanism with no risk of rug pull, thanks to the LP Burn system.
Simple explanation:
Every time you add liquidity to a DEX (like PancakeSwap), you receive LP Tokens as proof of ownership over that liquidity.
These LP Tokens can be used to remove the liquidity you’ve provided.
If the LP Tokens are burned, there is no way to retrieve the funds from the pool anymore because no one holds the LP tokens.
The burn address, such as 0x000000000000000000000000000000000000dEaD, is an inaccessible address. Any LP tokens sent there are permanently lost.
As a result:
Liquidity is permanently locked on the DEX.
The token becomes more exclusive, with no airdrops.
The price follows natural supply and demand, with zero risk of the developer pulling liquidity (rug pull).
This builds strong investor trust, since there's no possibility of manipulation by the developer.
However, if you as a regular holder want to add liquidity to the DEX, here’s how it works:
Your LP will not be burned automatically.
You will receive LP tokens as proof of your added liquidity.
You are free to remove your liquidity at any time and withdraw your tokens along with any earned fees.
Important clarification:
Only the developer LP tokens are burned.
In BOB’s case:
Developer burned their LP token during the initial launch of the project.
Goal was to permanently lock the liquidity and prove they have no control over the funds.
Summary:
Regular holders = free to add or remove LP at any time.
Developer (with LP burn) = cannot withdraw LP because the LP tokens are permanently burned.
LP Burn only applies to the tokens intentionally burned, and it does not automatically affect everyone else's LP.