Collateral.fun launch!

Hi Solana community! Today we launched collateral.fun. It was a passion project with the ultimate goal of providing an anti-rug utility for the Solana meme coin community.

How does it work?

Developers lock a percentage of their holdings as collateral during a lock-up period designated in days.

If the community discovers that a developer is acting in bad faith they can band together and stake their own tokens as community collateral.

At the expiration of the lock-up period there are two possible outcomes:

1. If the community has a larger collateral stake than the developer then the developer’s tokens are automatically burned.
2. If the developer has a larger collateral stake than the community then the developer’s tokens are unlocked and withdrawable.

Community members are free to add and remove collateral during the token lock-up period with no restrictions. Developers can only add collateral during the lock-up period.

Collateral.fun supports both pump.fun and moonshot tokens.