Investors often provide funds for token liquidity pools during presales. In the current system, developers receive these funds upon token launch, but bad actors may exploit this, draining liquidity and leaving investors stranded. Karma prevents this by locking liquidity pools and delaying ownership transfer to developers until they pass a 30-day Investor Protection Period.

Built into every KarmaPad Launch is a Downside Protection Protocol that returns the liquidity pool to the investors. If the floor price drops below 50% of launch price, signifying dramatic negative market sentiment, the liquidity pool is automatically refunded right back to its rightful owners, the investors. This allows all Karma launches to ensure investors’ downsides are protected in the event of a failed project.

Using the KarmaPad Developer Dashboard developers are able to set parameters within the contract pre-launch, but must operate using one of our Pre-Audited Contracts during their launch, ensuring that developers can not maliciously alter taxes or blacklist consumer wallets. Ownership of the contract will be transferred to the developers after they have passed their 30 Day Investor Protection Period.

All Karma Launches guarantee this won’t happen by instituting a built in Auto-Lock Protocol on any team tokens during the Investor Protection Period. If a project has a particular use case requiring available tokens for the community on launch as an integral part of their utility, a special request can be submitted to the Karma engineers to review their protocol and decide if an exception can be made.