The cryptocurrency space has witnessed numerous rug pulls, particularly on platforms like Pump.fun, due to the lack of transparency in tracking developer (dev) holdings. While many platforms display insider or dev holdings, these figures are often misleading. Developers can create multiple wallets to secretly accumulate tokens, making it appear as though they hold only a fraction of the supply while retaining full control in the background. When the project is rugged, investors are left without clarity on how it happened.
This proposal suggests launching a competition or bounty program to develop a reliable method for accurately identifying the true allocation of dev-held tokens. Implementing such a solution in the upcoming Jup Trenches initiative will set a new industry standard for transparency and security.
Currently, no reliable mechanism exists to track the actual holdings of a developer beyond the officially declared wallets. This allows bad actors to manipulate token distributions and execute rug pulls without any visible warning signs. The lack of transparency poses significant risks to investors and traders, undermining trust in decentralized finance (DeFi) platforms.
To address this issue, we propose the following:
Competition/Bounty Program: Encourage developers, security researchers, and blockchain analysts to create a method for accurately tracking the real allocation of dev-held tokens. The best solution will receive a reward and the opportunity to have their work integrated into relevant platforms.
Research and Development: Explore on-chain heuristics, wallet clustering techniques, and machine learning approaches to detect related wallets controlled by a single entity.
Implementation on Jup Trenches: Once a viable solution is found, integrate it into Jup Trenches, ensuring that investors have access to verified information about developer holdings.
Enhanced Transparency: Investors will have a clear and accurate representation of developer holdings, reducing the chances of rug pulls.
Improved Security: Fraudulent developers will find it harder to execute hidden exits, leading to a more secure trading environment.
Stronger Community Trust: Users will gain confidence in platforms that adopt this solution, fostering a healthier DeFi ecosystem.
The lack of visibility into true developer holdings is one of the key reasons rug pulls continue to plague platforms like Pump.fun. By incentivizing the community to develop an effective tracking method, we can revolutionize transparency in DeFi. The integration of such a solution into Jup Trenches will position it as the gold standard for security and reliability in the space.
symbol.