pump.fun token

Whitepaper: PUMP Token on Solana Network

Overview

Token Name: PUMP

Symbol: $PUMP

Network: Solana

Total Supply: 1,000,000,000 PUMP

Airdrop Supply: 10% (100,000,000 PUMP)

The PUMP token is the governance and utility token for the pump.fun platform, a decentralized app on Solana where users can create, deploy, and trade tokens. The initial token distribution will be via an airdrop to users who have previously interacted with the pump.fun protocol (deployed tokens or made trades). PUMP will feature a range of DeFi mechanisms, including staking, vesting, and bonding curves.

Token Distribution

Airdrop (10%)

• 100,000,000 PUMP will be distributed through an airdrop to qualifying users.

• Eligible users: Those who have deployed tokens or traded tokens on pump.fun before snapshot date YYYY-MM-DD.

• Airdrop will be distributed based on user activity:

• Deployment Activity: 60% of the airdrop pool will go to users who deployed tokens.

• Trading Activity: 40% of the airdrop pool will go to users who traded on the platform.

Team & Advisors (15%)

• 150,000,000 PUMP will be allocated to the founding team and key advisors.

• Vesting period: 2 years with a 6-month cliff.

• Linear release over the remaining vesting period.

Ecosystem & Partnerships (20%)

• 200,000,000 PUMP will be reserved for future ecosystem incentives, partnerships, and business development.

• Distribution will be at the discretion of the community or governance DAO.

Liquidity Provision & Incentives (25%)

• 250,000,000 PUMP will be allocated to liquidity mining rewards.

• This pool will be used to incentivize liquidity providers on decentralized exchanges (DEXs) and for staking rewards.

Treasury (30%)

• 300,000,000 PUMP will be reserved in the treasury for governance purposes and future use.

• The Treasury will be managed by the PUMP DAO (governed by $PUMP holders).

Tokenomics

Staking

PUMP holders can stake their tokens in the pump.fun staking contract to earn rewards.

• Annual Staking Yield: 10-15% APY (dynamic, subject to governance votes).

• Lockup Periods: Optional, with flexible lockups ranging from 1 month to 12 months.

• Yield Boost: The longer the lockup, the higher the staking rewards (up to 1.5x boost for 12-month stakers).

Staked tokens also allow holders to participate in platform governance (voting on key proposals).

Vesting

• Airdropped tokens are subject to a 6-month vesting period, unlocked linearly over that time.

• Vesting begins immediately after the airdrop claim is made.

• Users who deploy or trade more frequently will have shorter vesting periods (3-6 months).

Bonding Curves

The price of the PUMP token in liquidity pools will follow a bonding curve model. This model ensures a continuous liquidity model for early adopters and latecomers.

• Curve Type: Exponential Bonding Curve

• Initial Price: $0.02 per PUMP token

• Price at Cap: $2.00 per PUMP token (after 500,000,000 PUMP tokens have been distributed).

• Price increases as the circulating supply grows.

Governance

• PUMP token holders will be able to vote on governance proposals that impact the pump.fun platform.

• Proposals will include:

• Changes to staking rewards and structure

• Changes to liquidity incentives

• Ecosystem funding allocations

Governance will be weighted by token holdings, with a quadratic voting system to prevent centralization.

Metrics

Initial Distribution (Airdrop & Liquidity)

• Airdrop: 100,000,000 PUMP (10% of supply)

• Liquidity Mining & Incentives: 250,000,000 PUMP (25% of supply)

• Initial Liquidity Pool Size: 10,000,000 PUMP (paired with equivalent value in SOL)

Inflationary Schedule

• PUMP will follow a disinflationary model, with an initial inflation rate of 5% per year, decreasing by 0.5% per year until inflation reaches a stable 1% long-term inflation.

Staking Participation

• Target Participation Rate: 25-30% of the total supply staked at any given time.

• Staking Yield Cap: 20% APY

Governance Participation

• Voting Threshold: 1% of circulating supply for proposal submission.

• Quorum: 10% of circulating supply must participate in a vote for it to pass.

Use Cases

• Governance: Token holders will vote on protocol upgrades, parameter changes, and ecosystem grants.

• Staking: Earn passive income by locking PUMP tokens in the staking contract.

• Liquidity Mining: Provide liquidity to DEXs and earn additional rewards.

• Trading: Use PUMP as a utility token for trading and transaction fee discounts on pump.fun.

Security & Audits

The PUMP token smart contracts will be audited by third-party auditors.

Planned security features include:

• Multisig for treasury funds.

• Timelocks on all major contract changes.

• Bug bounty program for discovering potential vulnerabilities.

Roadmap

Q4 2024:

• Airdrop distribution

• Launch staking and governance modules

• Initial liquidity provision

Q1 2025:

• Launch liquidity mining rewards

• Community governance onboarding

• DAO activation

Q2 2025:

• Expand ecosystem grants and partnerships

• Introduce advanced DeFi features (e.g., cross-chain compatibility)