QUANTUM QNT

PumpSwap Explained: Fees, LP Tokens and What Burned or Locked Liquidity Means

Updated | 4 min read | QUANTUM (QNT) community

What PumpSwap is

PumpSwap is the automated market maker that pump.fun launched in March 2025, so graduated coins could move straight into a pool on the same platform instead of migrating to Raydium. The Block reported at launch that the roughly 6 SOL migration fee was removed. A third party explainer, published in February 2026 and updated in June 2026, describes PumpSwap as a constant product pool (x times y equals k) with full range liquidity, not concentrated liquidity. If pools are new to you, start with what a liquidity pool is.

How the pool prices trades

A constant product pool holds two assets, here a memecoin and SOL, and keeps their quantities multiplied equal to a constant. When you buy the coin, you add SOL and remove coins, and the price moves along that curve. The smaller the pool, the more a given trade moves the price. This is called price impact, covered in liquidity depth and price impact. The pool does not need a counterparty at that moment, but it can run thin, and thin pools are where slippage hurts most.

The fee schedule, and why old numbers are wrong

At launch, coverage reported a flat 0.25 percent swap fee, split 0.20 percent to liquidity providers and 0.05 percent to the protocol. Pump.fun's current fee page describes something different for canonical pools, meaning the pools created automatically when a coin graduates. Fees are tiered by market cap, calculated as price times one billion tokens. For SOL-paired coins the page lists a 1.25 percent total at the smallest market caps (0 to 420 SOL), with a 0.300 percent creator fee, a creator fee that rises to 0.950 percent in the next band (420 to 1,470 SOL), then steadily declines, reaching a 0.300 percent total at 98,240 SOL and above. Non canonical PumpSwap pools, which were not created by graduation, are listed at 0.3 percent total: 0.25 LP, 0.05 protocol and no creator fee.

Two practical points follow. First, a brand new graduated coin can cost more to trade than the 0.25 percent figure you may have seen in older posts. Second, the page notes fees can change, so treat any number, including these, as a snapshot reported on 2026-10-09.

Creator fees

Pump.fun's creator fee notes say canonical PumpSwap pools, created by the platform's migrate step, pay a creator fee, while normal pools do not. The fee page says creators can route the fee to charity or, if set at launch, to holders as Holder Rewards. Pump.fun's developer notes also describe fees being held in the pool and paid out later through permissionless sweep instructions. None of this is a reward for buyers, and you should not assume any payout from holding.

What LP tokens are

When someone deposits both assets into an AMM pool, the pool mints LP (liquidity provider) tokens in proportion to their share. In Uniswap's V2 documentation, burning LP tokens returns the provider's share of the pool plus accrued fees, and LP tokens are tradable and transferable. The same general idea applies on Solana pools. Whoever holds the LP tokens controls the right to withdraw that liquidity.

Two meanings of burn

This causes confusion. In AMM documentation, burning LP tokens means redeeming them: you destroy the receipt and take the assets out. In memecoin conversation, "burning LP" means sending the LP tokens to an address nobody controls, so the liquidity can never be withdrawn. Read context carefully. See how token burns work for the general idea.

What burned or locked LP can and cannot tell you

How to check

On Solscan, look at the pool account and the LP token mint, then see who holds the LP supply and whether a large share sits at a burn address or a known locker. DexScreener often shows liquidity figures but not always the LP holder facts, so confirm on chain. The full process is in the health checklist.

Memecoins carry high risk and most lose value. This is not financial advice, and nothing here predicts any token's price.

Sources and further reading

Reported as of 2026-10-09. Platform fees and rules change often, so check the primary pages before relying on any number. This is education, not financial advice. The QNT memecoin is independent of Quantinuum Ltd, the real company.

Frequently asked questions

What is the PumpSwap swap fee?

At launch in March 2025 it was reported as 0.25 percent. Pump.fun's current page lists tiered fees for graduated coins, from 1.25 percent at small market caps down to 0.300 percent at very large ones, and 0.3 percent for non canonical pools. Fees can change.

What is an LP token?

A receipt for a share of a liquidity pool. Whoever holds it can redeem it for their share of the assets and accrued fees.

Does burned LP mean a coin is safe?

No. It removes one way liquidity can be pulled, but holders can still sell, the price can still fall, and other risks remain.

Is locked LP the same as burned LP?

No. Locked LP is held by a locker until a date and can usually be withdrawn afterward. Burned LP is sent where nobody can retrieve it.

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QUANTUM (QNT) is the quantum sector memecoin on Solana. See the live chart, buys and burnt supply or read the token facts. Questions? Join the Telegram.