Every new buyer pushes the price up — the earlier you are, the more upside.
How it works →
🎢 THE PUMP.FUN MODEL · EXPLAINED
How the Bonding Curve Works
No order books. No market makers. No waiting. Just math that reacts instantly to every buy and sell.
1What is a bonding curve?
A bonding curve is a mathematical formula that determines price based on how many tokens have been bought. Instead of buyers and sellers matching orders, they trade directly with the curve itself.
The formula is public: price = (341.25 + LBTC in the curve) / tokens left in the curve (constant product with virtual liquidity, like pump.fun). Every buy adds LBTC, so the price goes up. Every sell takes LBTC out, so it goes down.
2What happens when you buy
1
You pay LBTCYour LBTC enters the pool reserve. This raises the total reserve.
2
Price recalculatesThe curve automatically sets a new, higher price for everyone.
3
You get tokensTokens arrive in your wallet. Bigger buys move the price more; you see the exact amount and price impact before you sign.
3Graduation — when a coin grows up
When a coin's bonding curve has raised 1,000 LBTC, it graduates:
All LBTC raised plus 200M reserved tokens go into a permanent pool
That liquidity is locked forever: nobody, not even the creator, can remove it
Trading continues on the pool with the same 0.60% fee
Graduation is a milestone, not a guarantee — most coins never get there.
4Where every trade fee goes
Each trade charges a 0.60% fee. Here's the split:
0.40%
Stays in the pool
0.20%
Creator
Creators earn 0.20% of every trade, forever — no vesting, no cliff, no clawback. Launch once, get paid forever.
5Risks you should know
⚠️ Coins can go to zero. Most memecoins don't graduate and lose value.
⚠️ Early buyers have the advantage. The curve means the first people in pay less per token.
⚠️ You can sell at any time, but selling pushes the price down — you may get less than you paid.
⚠️ No guarantee of liquidity. If everyone sells, you might not find buyers at your price.