Pump.fun launches BOOST mode to recycle $100M in dead liquidity

Pump.fun introduced BOOST mode, a default launch mechanism that redirects dead liquidity into automatic token buybacks and burns after each migration on the Solana-based memecoin platform.

"Over $100 million in liquidity becomes permanently trapped each year when tokens migrate from their bonding curves," Alon, co-founder of Pump.fun, said in the announcement. "Now, we're reinjecting future liquidity into every bonded coin."

Under the previous migration structure, each token sacrificed roughly 20% of its liquidity. BOOST mode reinjects 17.6 SOL for SOL trading pairs or $2,516 for USDC pairs, executed through a time-weighted average price system over five minutes following migration. Acquired tokens are automatically burned after each transaction.

The feature applies to all coins migrating after 10:23 a.m. Eastern Time on July 21, with no opt-in required from creators or traders. Tokens migrated before the cutoff and those launched through Pump.fun's Mayhem system are excluded. The mechanism creates additional buying pressure and permanently reduces the circulating supply of migrated tokens.

Pump.fun said the trading experience will remain unchanged. The redirected liquidity is intended to solve what the platform described as a structural inefficiency in memecoin launches, where capital locked in liquidity pools remained inaccessible even after traders exited their positions.

The Solana memecoin launchpad has faced growing backlash over the dead liquidity issue, with critics arguing that the previous migration structure effectively burned value without benefiting token holders. BOOST mode directly addresses that criticism by converting trapped capital into market purchases.

Pump.fun's native PUMP token traded largely flat following the announcement, though it remained up more than 30% over the prior seven days, according to CoinGecko data. The feature sets a new standard for token launch mechanisms on Solana, potentially pressuring competing launchpads to adopt similar structures.

This article is for informational purposes only and does not constitute investment advice.