Whatsapp has been working on developing the 'vacation mode' feature quite actively and is expected to launch it for Android and iOS users soon. The idea of developing this feature was abandoned a few months ago but the cross-platform messaging app decided to rework on it soon after. The feature once implemented would hide notifications from archived chats. The feature is currently under development.
According to Wabetainfo, the "Vacation Mode" feature has a long story. WhatsApp started to develop it under the name "Ignore Archived Chats" and then they abandoned the development. In the WhatsApp beta for Android 220.127.116.11 update, WhatsApp was finally starting to implement the feature again, including several improvements.
This feature allows users to keep your archive chats when new messages arrive. In the current version, when you receive a message from an archived chat, WhatsApp automatically unarchives it. If you decide to use the vacation mode in the future update, chats won't be automatically unarchived anymore. The WhatsApp features tracker also reported that changes have been spotted in the UI.
Although Whatsapp has not announced a release date for this feature yet but the messaging app has been implementing the presentation banner, alluding that the launch is not far. Recently, Whatsapp has been rolling out a lot of new features like the forever mute chats option and the disappearing messages feature.