Pump’s new ‘Mayhem Mode’ fails to boost token launches or revenue in first week

Last week, Pump.fun launched "Mayhem Mode," an opt-in token creation setting where an autonomous AI trading agent may buy and sell a newly launched coin during its first 24 hours. The feature works by minting an extra 1 billion tokens for the agent to trade, with any unused agent tokens burned after 24 hours. It is worth noting that the agent has caps on trade size and frequency, and also does not pay any protocol fees.

With this in mind, "Mayhem Mode" is designed to facilitate early price discovery, so more coins are noticed faster. With the launch friction unchanged, the expected lift is on token visibility. However, this feature could be perceived as engaging in wash-like behavior due to how a single beneficial actor is artificially making the tape look busy. Though elements such as public disclosure, the opt-in feature, and the fact that agents don't pay protocol fees make it more akin to platform-provided bootstrapping or market making.

If Pump pairs Mayhem with stronger curation and ranking, the extra day-one activity can raise the share of coins that "break out." But without that, Mayhem risks becoming a high-noise, low-yield feature.

In the week before Mayhem, an average of 17,300 tokens were launched on Pump.fun per day. Since Mayhem was introduced, the platform has averaged 17,800 token launches per day, an insignificant increase compared to the prior week. This suggests that "mayhem mode" has had little to no positive impact on the frequency and volume of tokens launched so far, although the sample size is small and timing effects may be significant.

Token launches drive Pump's top line through creation fees and take-rates on bonding and early trading. Over the past week, daily revenue has actually declined despite Mayhem. Lower revenue reduces PUMP buybacks, which weakens mechanical support for the token. As of writing, PUMP's market cap sits at  around $1.1 billion, about 30% below its all-time high from two months ago.

Over the next week or two, token launch frequency on Pump.fun is likely to remain choppy and fairly muted as users test the new mode. If better supplementary features, such as scheduled Mayhem blocks or visibility tiers, are introduced, token launches could rise as a result, which could then lead to positive spillover effects for Pump.fun's other metrics.

This is an excerpt from  The Block's Data Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.