Pump.fun burns 36% of circulating PUMP supply, unveils 50% revenue buyback program

Pump.fun, the leading Solana-based meme coin launchpad, said Tuesday it has permanently burned approximately $370 million worth of $PUMP tokens previously repurchased in the open market. The burn represents roughly 36% of the token's circulating supply, making it one of the largest token burns in recent crypto history.

The burn was executed through two on-chain transactions and included all $PUMP tokens accumulated through buybacks funded by platform revenue over the past nine months. 

According to the company, 100% of the revenue generated during that period was directed toward open-market purchases of the token.

Pump.fun said the move is intended to strengthen confidence among token holders and address concerns about long-term alignment between the platform and its community.

Pump.fun launches revenue-funded buyback program following record token burn

The company also announced a new programmatic buyback-and-burn model under which 50% of net revenue from its Bonding Curve, PumpSwap and Terminal products will be used to automatically purchase $PUMP, with all acquired tokens immediately burned.

"Today, we're excited to announce that we have also initiated a buyback scheme under our long term goal to remove and burn as much of the circulating token supply as possible," Pumpfun wrote.

The mechanism will operate through a locked smart contract and intermediary wallets designed to automate execution and provide transparency, according to the team. 

The remaining 50% of revenue will be retained to support operations, product development, hiring, marketing, ecosystem expansion and potential strategic investments.

"The remaining 50% of revenue will be used to build a sustainable business with less reliance on our existing treasury," the firm stated.

Pump.fun said the revised model reflects a shift from using all revenue for buybacks toward balancing tokenholder returns with long-term business sustainability. While the prior approach demonstrated commitment to supporting the token, the company said it constrained flexibility for reinvestment and growth.

"If we forgo retaining a portion of revenues for operations and growth, we run the risk of our treasury being throttled by burn rather than being used for high impact strategic investments, such as impactful acquisitions & new product ventures," Pump.fun added.

Co-founder Alon Cohen described the change as "a turning point for PUMP and Pump.fun," adding that the goal is to align ongoing token support with the platform's long-term evolution.

"I am extremely confident that 50% of the business we're building toward will dwarf 100% of the business we have today," Alon wrote on X.

Founded in January 2024, Pump.fun has generated over $1 billion in revenue and $158 billion in lifetime trading volume, according to DefiLlama.

The burn comes as crypto projects have increasingly turned to supply reduction strategies and revenue-linked buyback models to reinforce value accrual. However, the long-term effectiveness of such mechanisms often depends on sustained platform activity and revenue generation.

PUMP is up over 8% in the past 24 hours at the time of writing.