Pump.fun adjusted the treatment of liquidity after the new currency went online. The platform has set up a default mechanism for all new moving tokens, re-entering a portion of the liquidity that would have been permanently locked at the time of the move for short-term buy-back and destruction of the currency after the migration.
5 minutes automatic buyback after relocation
According to Pump.fun, about 20% of the liquidity was permanently locked in the past when the tokens were moved from the booking pool. This part of the funds can no longer be used by traders and is referred to by the platform as “dead liquidity”.
After the BOOST model is activated, this part of the fund will no longer be idle, but will be bought automatically at time-weighted average prices within 5 minutes of the completion of the migration of the tokens and the purchased tokens will be destroyed directly. According to the Platform, each currency that completes the migration will receive a liquidity return equivalent to 17.6 SOLs; in the case of USDC transactions, approximately US$ 2516.
Pump. fun indicates that the way the user deals in the booking pool and the mobility pool will not change. The new mechanism applies to the Pump.fun token for moving after 10:23 a.m. Eastern US Time on July 21st; the earlier migration token and the project issued through Mayhem are outside the scope of this adjustment.
Responding to light criticism of liquidity
Prior to this update, the market had been questioning the depth of liquidity of the Pump.fun platform meme for weeks. Some traders compared it to the launchpad of Robinhood, which, according to them, had some of the meme coins with a smaller market value, had more liquidity.
Users also questioned why some Pump.fun coins, valued at tens of millions of United States dollars, still fluctuated significantly because of small sales orders. The debate focused on the fact that shallow liquidity would magnify the slide points and limit the buyer ' s investment of more money.
The co-founder of Pump.fun, Alon, stated that this change could increase the liquidity of about 20 per cent for each new moving token and could inject hundreds of millions of dollars into the ecology over a longer period of time, without changing the way the user traded. Another co-founder, Sapijiju, explained that the team had set the buy-back window for five minutes because they considered the initial phase of relocation to be the most critical for the subsequent performance of the coin.
Traders generally give positive ratings.
The Bulpen co-founder and trader Ansem described the update as a meaningful improvement. In his view, deeper liquidity could help to alleviate the problem of high-glie points, which was one of the reasons why many tokens could not attract larger purchases and could not continue to raise valuations.
Ansem had previously mentioned in podcasts that, if he were to adjust Pump.fun, one of the priorities would be to increase the depth of mobility while reducing the copying project and promoting platform drops.
At the same time, Pump.fun original currency PUMP has risen nearly 40 per cent over the past seven days, leading to an increase in the amount of 100 coins before the market value. On July 12, the token was unlocked once, releasing 82.5 billion PUMPs allocated to team members and investors, but the price movement did not weaken.