Pump.fun Introduces BOOST Mode, Aiming to Reinject Permanently Locked Liquidity into the Token Market

BlockBeats News, July 21st, Meme coin launchpad pump.fun announced the release of a new BOOST mode, setting it as the default launch mechanism for all future new Pump.fun tokens. The feature aims to address the long-standing issue of "dead liquidity" during token migration, re-injecting the originally permanently locked liquidity back into the token market through a buyback and burn mechanism.

Pump.fun stated that approximately over $100 million in liquidity is permanently lost during token migration each year, with this portion of funds unable to continue supporting market liquidity. Historically, about 20% of liquidity from each completed token migration would settle in the liquidity pool (LP), even if all traders sold their holdings, some funds would still permanently remain in the pool. The BOOST mode will utilize this settled fund and, within 5 minutes after each token completes migration, re-inject it into the market through an automatic buyback mechanism.

Specifically, the BOOST mode will execute buybacks post-migration through Time-Weighted Average Price (TWAP) and automatically burn the purchased tokens. For example, the SOL trading pair will be injected with 17.6 SOL, and the USDC trading pair will be injected with $2516. Pump.fun stated that this mechanism does not require manual activation by users. All new Pump.fun tokens that complete migration after 10:23 AM US Eastern Time on July 21st will automatically enable the BOOST configuration, while tokens migrated before or released via the Mayhem platform will not have this feature. This upgrade aims to enhance the trading experience and improve the long-term utilization efficiency of liquidity within the ecosystem.