What is Pump.fun (PUMP)?

Deep Dive

1. Core Functionality

Pump.fun simplifies token creation to three steps: selecting a coin, buying via bonding curve, and selling at any time. This model (explained here) ensures:
- Equal access through fair launches
- Automated liquidity provisioning
- 1% transaction fee sustaining platform operations

2. Technical Architecture

Built on Solana, the platform leverages:
- Low transaction fees ($0.0005 per trade)
- High throughput (65k TPS capacity)
- Smart contracts automating token minting and liquidity management

Tokens "graduate" to decentralized exchanges like Raydium once reaching $50k-$69k market cap, creating an organic growth path.

3. PUMP Token Mechanics

The native token (1T total supply) serves multiple roles:
- Fee redistribution: 98% of platform revenue buys back PUMP from open markets
- Governance: Future voting on protocol upgrades
- Access tiers: Unlocks premium features like analytics dashboards

Conclusion

Pump.fun has become Solana’s de facto meme coin launchpad by merging simplicity with economic safeguards – but can it evolve beyond speculative token creation to enable sustainable projects? The answer may determine whether PUMP transitions from viral novelty to enduring protocol.