> For the complete documentation index, see [llms.txt](https://docs.div.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.div.fun/core-concepts/graduation.md). # Graduation Graduation is the transition of a token from its [bonding curve](/core-concepts/the-bonding-curve.md) to an open market. It is the moment a token stops being priced by a formula and starts being priced by a HyperSwap V2 pool. ### When it happens A token graduates the instant its curve reaches its target. There is no waiting period and no manual step. The trade that pushes the curve over its target is the trade that triggers graduation, in the same transaction. ### What happens at graduation 1. The **HYPE collected by the curve** is taken as one side of a liquidity pair. 2. A **matching amount of tokens** is taken as the other side. 3. A **HyperSwap V2 pool** is created (or seeded) with that liquidity. 4. The **liquidity is burned** — LP tokens are sent to a dead address, permanently removing them from circulation. 5. Any residual amounts left on the curve are swept according to the contract's rules. From this point the token trades like any other HyperEVM token: against a real pool, with a market price set by supply and demand, and with arbitrage keeping it honest. ### Dividends during the curve and after The [fee-on-transfer](/core-concepts/dividend-tokens.md) mechanism is active from the first trade — on the bonding curve and on the graduated pool. Every trade sets aside the token's [dividend share](/core-concepts/dividend-distribution.md), which is converted to the [reward asset](/core-concepts/reward-assets.md) and distributed to holders. Graduation changes the trading venue, not the dividend model. After graduation, trading happens on a deeper open market and volume typically increases — which means more dividends — but the mechanism itself does not switch on at this point. ### Burned liquidity The liquidity created at graduation is burned — the LP tokens are sent to a dead address and permanently destroyed. This is a structural protection: no one, including the team, can withdraw the liquidity that backs the token. It does not remove market risk — the price can still fall — but it removes one common failure mode of launchpad tokens. ### After graduation Once graduated, a token is fully in the open market. Trading happens on its HyperSwap pool, buys and sells both carry the dividend share, and the [keeper](/protocol/the-keeper.md) pushes dividends to holders. Continue to [dividend distribution](/core-concepts/dividend-distribution.md) to see exactly how holders are paid. Graduation is the transition of a token from its [bonding curve](/core-concepts/the-bonding-curve.md) to an open market. It is the moment a token stops being priced by a formula and starts being priced by a HyperSwap V2 pool. ### When it happens A token graduates the instant its curve reaches its target. There is no waiting period and no manual step. The trade that pushes the curve over its target is the trade that triggers graduation, in the same transaction. ### What happens at graduation 1. The **HYPE collected by the curve** is taken as one side of a liquidity pair. 2. A **matching amount of tokens** is taken as the other side. 3. A **HyperSwap V2 pool** is created (or seeded) with that liquidity. 4. The **liquidity is burned** — LP tokens are sent to a dead address, permanently removing them from circulation. 5. Any residual amounts left on the curve are swept according to the contract's rules. From this point the token trades like any other HyperEVM token: against a real pool, with a market price set by supply and demand, and with arbitrage keeping it honest. ### Dividends during the curve and after The [fee-on-transfer](/core-concepts/dividend-tokens.md) mechanism is active from the first trade — on the bonding curve and on the graduated pool. Every trade sets aside the token's [dividend share](/core-concepts/dividend-distribution.md), which is converted to the [reward asset](/core-concepts/reward-assets.md) and distributed to holders. Graduation changes the trading venue, not the dividend model. After graduation, trading happens on a deeper open market and volume typically increases — which means more dividends — but the mechanism itself does not switch on at this point. ### Burned liquidity The liquidity created at graduation is burned — the LP tokens are sent to a dead address and permanently destroyed. This is a structural protection: no one, including the team, can withdraw the liquidity that backs the token. It does not remove market risk — the price can still fall — but it removes one common failure mode of launchpad tokens. ### After graduation Once graduated, a token is fully in the open market. Trading happens on its HyperSwap pool, buys and sells both carry the dividend share, and the [keeper](/protocol/the-keeper.md) pushes dividends to holders. Continue to [dividend distribution](/core-concepts/dividend-distribution.md) to see exactly how holders are paid. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.div.fun/core-concepts/graduation.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.