Pump.fun launches BOOST mode to recycle dead liquidity through token burns

Pump.fun has unveiled BOOST mode, a novel launch feature that transforms inactive liquidity into token buybacks and burns. This functionality became standard for all qualifying new tokens on July 21. The Solana-based memecoin launchpad estimates that over $100 million in liquidity becomes permanently stranded annually under its former migration system. BOOST mode channels these funds into automatic market purchases that are instantly burned, thereby enhancing buying pressure and decreasing circulating supply. For each eligible migration, the protocol allocates about 17.6 SOL for SOL trading pairs or roughly $2,516 for USDC pairs within the first five minutes, utilizing a Time-Weighted Average Price (TWAP) approach. Tokens obtained through BOOST are promptly burned. Founder Alon stated that BOOST enhances liquidity efficiency by around 20% while maintaining the current user experience. The launch has elicited mixed responses, with some traders doubting the impact of redirecting 17.6 SOL on token prices. Json, the Head of Content, contended that inactive liquidity was never usable for trading. BOOST marks one of the most significant infrastructure advancements for Pump.fun this year. Following the announcement, PUMP, the platform's native token, remained relatively stable.