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Pump.fun Tackles Liquidity Criticism With BOOST Mode for Every New Token

New launch mechanism reinjects dead liquidity through 5 minutes of automatic buybacks and burns as the platform faces growing criticism over meme coin liquidity.

Memecoin launchpad Pump.fun has introduced BOOST mode as the default launch mechanism for every newly migrated token, marking one of the platform's biggest changes to its token launch process.

The update automatically reinjects liquidity that previously became permanently locked during migration. Instead of leaving that capital unused, BOOST mode deploys it through automatic buybacks and burns over a 5-minute period immediately after a token migrates.

According to pump.fun, more than $100 million in liquidity becomes dead liquidity every year. The platform said that capital could instead support newly migrated tokens during what it considers a critical stage of their lifecycle.

How BOOST Mode Works

Historically, every token migrating from the bonding curve sacrificed about 20% of its liquidity. Pump.fun refers to this permanently locked capital as dead liquidity because traders cannot access it, even if every holder eventually sells.

Under BOOST mode, that liquidity now funds automatic buybacks after migration. Pump.fun said each migrated token receives reinjected liquidity worth 17.6 $SOL for SOL trading pairs or about $2,516 for $USDC pairs. The system executes time-weighted average price purchases over 5 minutes, and automatically burns every token it buys.

The company said the trading experience remains unchanged on both the bonding curves and liquidity pools. BOOST mode activates automatically for every pump.fun token that migrated after 10:23 a.m. EST on July 21. Tokens that migrated before that time, along with projects launched through Mayhem, do not receive the new configuration.

Pump.fun co-founder Alon said the change increases liquidity by about 20% for every newly migrated coin without changing how users trade. He added that the system could inject hundreds of millions of dollars into the ecosystem over time.

After the announcement, one user asked why the liquidity boost lasts only 5 minutes instead of running longer.

Pump.fun co-founder Sapijiju replied that the goal is to help tokens immediately after migration because the team believes that period is critical to their long-term success.

Update Follows Growing Liquidity Criticism

The launch comes after weeks of criticism surrounding liquidity on pump.fun meme coins, particularly as traders compared the platform with Robinhood's launchpad.

Some users argued that Robinhood Chain meme coins maintained significantly deeper liquidity than comparable pump.fun tokens despite having smaller market caps.

Others questioned how some pump.fun tokens with valuations in the tens of millions of dollars could experience large price swings from relatively modest sell orders.

The debate intensified as several traders claimed that shallow liquidity limited the amount of capital buyers could deploy without causing significant slippage.

Traders Welcome the Change

Popular trader and Bullpen co-founder Ansem described the update as a meaningful improvement. He said 20% deeper liquidity on all bonded pump.fun coins could address one of the biggest reasons many tokens struggle to reach higher valuations. According to Ansem, buyers often avoid making larger purchases because high slippage makes entering positions too expensive. He added that the change should produce more tokens capable of sustaining stronger price moves.

The announcement also aligns with ideas Ansem previously discussed on the Market Bubble podcast. When co-host Banks asked what changes he would make if he ran pump.fun, Ansem listed deeper liquidity as one of his top priorities, alongside delivering the platform's anticipated airdrop and reducing copycat token launches.

The update directly addresses one of the most common criticisms surrounding pump.fun's launch model by redirecting liquidity that previously remained locked forever back into newly migrated tokens.

$pump Jtx

Meanwhile, pump.fun’s native token $PUMP is up almost 40% in the last 7 days, making it the top gainer among the top 100 coins by market cap. The token’s price action has defied its July 12 unlock event, which released 82.5 billion $PUMP allocated to team members and investors. 

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