> ## Documentation Index > Fetch the complete documentation index at: https://402.cat/docs/llms.txt > Use this file to discover all available pages before exploring further. # Token Lifecycle > The complete journey of a token from creation to graduation ## Overview Every token on 402.cat follows the same lifecycle: **Creation → Trading → Graduation**. Understanding this journey helps you make better decisions about when to create, buy, or sell. ## The Five Stages ```mermaid theme={null} graph LR A[Creation] --> B[Active Trading] B --> C[Approaching Graduation] C --> D[Graduation] D --> E[V4 Trading] ``` *** ## Stage 1: Creation ### Creating a Token Anyone can create a token for **\$0.01 USDC**: ```bash theme={null} httpcat create "Moon Cat" "MOON" --website https://mooncat.io ``` **What happens:** 1. **Smart contract deployed** with your parameters 2. **Initial state set**: * Total supply: 1,000,000 tokens * Real tokens: 793,100 (79.31% for trading) * LP reserve: 206,900 (20.69% for graduation) * Virtual reserves initialized 3. **Bonding curve activated** 4. **Token address assigned** (ends in `402`) **Initial Conditions:** * Market cap: $6.90 (testnet) or $6,900 (mainnet) * Price: \~\$0.0000069 (testnet) * Status: `active` * Available for trading immediately Your token address ends in `402` for easy identification! *** ## Stage 2: Active Trading ### On the Bonding Curve Tokens trade on the constant product bonding curve: **Buying drives price up:** * Users add USDC, receive tokens * `real_tokens` decreases * `virtual_usdc` increases * Price increases automatically **Selling drives price down:** * Users return tokens, receive USDC * `real_tokens` increases * `virtual_usdc` decreases * Price decreases automatically **Key Metrics:** * **Price**: Determined by virtual reserves (`virtual_usdc / virtual_tokens`) * **Market Cap**: Price × total supply * **Graduation Progress**: `(initial_real_tokens - real_tokens) / initial_real_tokens` * **Liquidity**: All `real_usdc` available ### Trading Dynamics **Early Stage** (0-25% graduation progress): * Low price, high risk * Small trades have minimal price impact * Volatile - can reverse quickly * Creator and early buyers accumulating **Mid Stage** (25-75% graduation progress): * Rising price if community is strong * More holders, more liquidity * Price impact becoming noticeable * Community building momentum **Late Stage** (75-100% graduation progress): * Near graduation, high excitement * Large trades have significant impact * Last chance to buy on curve * Airdrop anticipation *** ## Stage 3: Approaching Graduation ### The Final Push As `real_tokens` approaches zero: **At 90% Progress:** * Only 79,310 tokens left (10% of original) * Price has increased significantly * Market cap approaching threshold * Community excitement building **At 99% Progress:** * Only 7,931 tokens left (1% of original) * Very high price * Imminent graduation * FOMO intensifies **Trading Behavior Changes:** * **Buyers**: Racing to get in before graduation * **Sellers**: Some taking profits, others holding for airdrop * **Price Impact**: Every trade moves the price noticeably * **Volume**: Typically highest near graduation ### Graduation Trigger When the last token is bought: ``` real_tokens == 0 ``` Graduation process begins automatically within 30 seconds. *** ## Stage 4: Graduation ### Automatic Graduation Process Background monitor detects `real_tokens == 0` Token status: `active` → `graduating` New buys rejected during this phase **LP Reserve Distribution** (206,900 tokens): * Proportionally distributed to all holders * Based on your % of circulating supply * Example: 1% of supply → receive 2,069 airdrop tokens **Uniswap V4 Pool**: * CAT/Token pair created * Liquidity added using `real_usdc` + LP tokens * 80% LP locked forever * 20% LP to creator Token status: `graduating` → `graduated` Trading now happens on Uniswap V4 only **Duration:** Typically 1-5 minutes depending on network conditions. ### What You Receive **As a Holder:** * ✅ Your original tokens (unchanged) * ✅ Airdrop tokens (\~26% more) * ✅ LP fee share (33% of trading fees) **As the Creator:** * ✅ 20% of LP position (unlocked) * ✅ 33% of all hook fees * ✅ Ongoing revenue from trading **Example:** ``` You bought: 10,000 tokens for $0.20 Circulating: 793,100 tokens Your share: 1.26% Airdrop: 10,000 × (206,900 / 793,100) = 2,608 tokens New total: 12,608 tokens Your % of supply: 1.26% (unchanged) ``` *** ## Stage 5: V4 Trading ### Post-Graduation **Trading Location:** Uniswap V4 only **How to Trade:** ```bash theme={null} # CLI automatically detects graduated tokens httpcat buy MOON 0.10 # Routes to V4 httpcat sell MOON 50% # Routes to V4 # Or use Uniswap directly # Swap USDC → CAT → MOON ``` **Fee Structure:** * Hook fee: \~0.3% * Creator: 33% * Platform: 33% * LPs: 33% **Price Discovery:** * Market-driven (no bonding curve) * Deeper liquidity for larger trades * Subject to normal DEX dynamics * Influenced by overall market conditions ### Claiming Fees **Creators:** ```bash theme={null} # View claimable fees httpcat claim MOON # Claim fees httpcat claim MOON --execute ``` **LP Holders:** * Fees accumulate in V4 position automatically * Claim via Uniswap V4 interface * Can compound by adding more liquidity *** ## Lifecycle Metrics ### Timeline **Typical Successful Token:** * **Day 1**: Creation, early trading (0-10% progress) * **Day 2-7**: Community building (10-50% progress) * **Week 2-4**: Momentum building (50-90% progress) * **Final Push**: Last 10% → graduation **Fast Movers:** * Graduate in hours or days * Strong marketing and community * Often meme-driven or viral **Slow Burners:** * Take weeks or months * Organic community growth * Utility or long-term vision ### Success Indicators **Likely to Graduate:** * ✅ Steady buying pressure * ✅ Growing holder count * ✅ Active community/chat * ✅ Creator engagement * ✅ Consistent progress **May Not Graduate:** * ❌ No trading activity * ❌ Single whale holder * ❌ Creator abandoned * ❌ Negative community sentiment * ❌ Stalled progress *** ## State Transitions | Current State | Trigger | Next State | | ------------- | ------------------ | ----------------------- | | Not created | `create_token` | `active` | | `active` | `real_tokens == 0` | `graduating` | | `graduating` | Airdrop complete | `graduated` | | `graduating` | Error | `failed` (rare) | | `graduated` | N/A | Permanent | | `failed` | Admin fix | `active` or `graduated` | **Permanent States:** * `graduated`: Cannot return to bonding curve * Token trades on V4 forever *** ## Best Practices by Stage **Do:** * Choose memorable name and symbol * Add website/social links * Plan marketing strategy * Set realistic expectations **Don't:** * Create without a plan * Copy existing successful tokens * Abandon after creation **Do:** * Build community * Engage in chat * Share updates * Monitor progress **Don't:** * Dump on buyers * Make unrealistic promises * Ignore community **Do:** * Communicate timeline * Prepare for V4 listing * Celebrate milestones * Plan post-graduation strategy **Don't:** * Cause panic selling * Overhype airdrop * Disappear before graduation **Do:** * Continue community engagement * Add more V4 liquidity if desired * Claim and reinvest fees * Long-term vision **Don't:** * Abandon after graduation * Dump LP tokens immediately * Ignore ongoing community *** ## Next Steps Deep dive into pricing mechanics Complete graduation documentation Understand all fees Create your first token The best tokens balance fair distribution (many holders), community engagement, and steady graduation progress. Quality over hype wins long-term.