Pump.fun Unveils BOOST Mode, Using Buybacks and Burns to Revive "Dead" Liquidity

Pump.fun has rolled out BOOST mode, a new default launch and migration setup designed to recycle so-called "dead liquidity" through automated buybacks and token burns once a coin completes the platform's bonding curve. The Solana memecoin launchpad estimates that more than $100 million in liquidity becomes permanently trapped each year when tokens migrate off their bonding curves. Pump.fun labels this capital "dead liquidity" because it remains locked in liquidity pools even after traders exit their positions. Under the prior migration model, each token effectively gave up about 20% of its liquidity, according to the platform. BOOST mode redirects a portion of that amount into market buys during the five minutes immediately following a migration. The mechanism injects 17.6 SOL for SOL trading pairs or $2,516 for USDC pairs. Purchases are spread out using a time-weighted average price (TWAP) approach, and the tokens acquired in each tranche are automatically burned. Pump.fun said creators and traders do not need to opt in. All eligible coins migrating after 10:23 a.m. Eastern Time on July 21 will automatically use BOOST. Tokens that migrated before that cutoff will not receive the feature, and coins launched via Pump.fun's Mayhem system are excluded. The platform said the trading experience will remain unchanged. It expects the redirected liquidity to add buying pressure and permanently reduce the circulating supply of tokens after migration. Pump.fun's native PUMP token was largely unchanged following the announcement, while still up more than 30% over the past seven days.