First Ledger Introduces New Token Allocation Method in Its Launchpad Program

First Ledger, a leading trading platform on the XRP Ledger (XRPL), has introduced a new method for token allocation in its launchpad program.

First Ledger, a prominent trading platform on the XRP Ledger (XRPL), has unveiled a novel approach to token allocation within its launchpad program. The development was shared by the team in a post on X earlier today.

For those unfamiliar, First Ledger provides a platform to launch tokens on the XRPL network without the need for KYC. The project commenced a public beta test in October 2024, and since then, the XRP community has witnessed a surge in meme coin launches.

Significantly, the latest update directly links token allocation to the amount of XRP a creator burns during the launch event. This move is designed to incentivize token developers to participate more substantially.

The new system establishes the following tiers for token allocation based on the amount of XRP burned:

Creators burning 100,000 XRP or less will receive a token allocation of 10%.

Those burning 200,000 XRP will be eligible for a 15% allocation.

Creators who burn 300,000 XRP will receive a 20% allocation.

Finally, those burning 500,000 XRP or more will be entitled to a maximum token allocation of 25%.

This update has garnered appreciation from members of the XRP community. Many have lauded First Ledger for the move, viewing it as a measure to incentivize honest participation and create a barrier to entry that could help mitigate bad actors.

Notably, the burning mechanism could reduce the risk of “rug pulls,” where developers abandon a project or vanish with funds. In this scenario, developers would need to burn a substantial XRP amount to claim a large portion of the token allocation.

By tying token allocations to burning XRP, it prevents developers from easily holding a large amount of tokens without having “skin in the game,” thus reducing the incentive for rug pulls.

On the other hand, some market participants have expressed concerns about the update. One user, “AltcoinMage,” voiced their skepticism, suggesting that the new system allows XRP whales to game the rules. They highlighted the token allocation based on the burn amount, calling it a “pretty big red flag.”

In contrast, another commenter argued that the update improves the previous system. They pointed out that under the old model, one could launch a token with a 30% allocation by burning just 125 XRP and then had the potential to rug pull immediately.

“This update prevents some abuse,” the commenter stated.

It's better then the previous system. For 125xrp you could launch a token with 30% allo and rug instantly. This prevents some abuse

— D (@DiXrpl74009) February 6, 2025

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