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Over $287M in SOL Removed from Circulation via Pump.fun’s Graduated Token Mechanism

In the world of cryptocurrencies, the mechanisms controlling supply and demand play a crucial role in shaping a token’s value. One such mechanism gaining attention is how Pump.fun handles token launches and liquidity pools, which indirectly affects the circulating supply of SOL.

Recently, Pump.fun co-founder shared on X that their token graduation mechanism, combined with liquidity pool burning, is effectively reducing the circulating supply of SOL.

In this article, we’ll break down how this mechanism works and examine its deflationary impact on SOL.

Over $287M in SOL Removed from Circulation via Pump.fun’s Graduated Token Mechanism

In the world of cryptocurrencies, the mechanisms controlling supply and demand play a crucial role in shaping a token’s value. One such mechanism gaining attention is how Pump.fun handles token launches and liquidity pools, which indirectly affects the circulating supply of SOL.

Recently, Pump.fun co-founder shared on X that their token graduation mechanism, combined with liquidity pool burning, is effectively reducing the circulating supply of SOL.

In this article, we’ll break down how this mechanism works and examine its deflationary impact on SOL.

https://solanafloor.com/news/over-287-m-in-sol-removed-from-circulation-via-pump-fun-s-graduated-token-mechanism