Pump.fun has launched a new BOOST mode and set it as the default launch mechanism for all newly issued Pump.fun tokens going forward, according to BlockBeats on July 21.
The meme coin issuance platform said the feature is meant to tackle the long-standing issue of “dead liquidity” in token migrations. It plans to send permanently locked liquidity back into the token market through a buyback-and-burn mechanism.
Dead liquidity during migration
Pump.fun said more than $100 million in liquidity has been permanently lost each year during token migrations, leaving that capital unavailable for continued market liquidity support.
Historically, about 20% of the liquidity tied to each token that completed migration would remain stuck in liquidity pools. Even if all traders sold their holdings, part of the funds would still stay in the pool permanently, the platform said.
How BOOST works
Under BOOST, those stranded funds will be put back into the market through an automatic buyback mechanism within five minutes after a token completes migration.
More specifically, the system will execute post-migration buybacks using a time-weighted average price, or TWAP, and automatically burn the purchased tokens. Pump.fun said SOL pairs will receive 17.6 SOL, while USDC pairs will receive $2,516 in funding.
Which tokens are included
Pump.fun said users will not need to switch the feature on manually. All new Pump.fun tokens that complete migration after 10:23 a.m. Eastern Time on July 21 will automatically use the BOOST configuration.
Tokens that migrated earlier, as well as tokens issued through the Mayhem platform, will not include the feature.
The company said the upgrade is intended to improve the trading experience and raise the long-term efficiency of liquidity use across the ecosystem.