How Pump.fun Works

Pump.fun is a one-stop shop for the creation and trading of Solana memecoins. The platform works on a bonding curve system; a mathematical model determining the price of a token based on supply and demand.

Each launch on Pump.fun generates a billion tokens with 800 million allocated to the bonding curve and its strict mathematical formula. The price of the token increases exponentially the further along the curve it progresses, incentivizing users to buy early.

When the 800 million tokens are sold, the bonding curve process is complete and the token ‘graduates’ to the decentralized exchange (DEX) PumpSwap. The dollar value of the graduation cap has varied as the Solana price fluctuates, so while the initial figure was $69,000 it is currently closer to $50,000.