Pump.fun burns 36% of PUMP supply and revises strategy

Pump.fun burns 36% of PUMP supply and revises strategy
Pump.fun completes major token burn and changes strategy

​Pump.fun, one of the largest meme coin launch platforms on Solana, has completed a major token burn and announced a significant change in its financial strategy. The platform has burned all PUMP tokens it had previously repurchased, representing approximately 36% of the total circulating supply, and will now allocate 50% of its future net revenue to ongoing buybacks and burns.

Highlights

  • Pump.fun burned tokens equal to 36% of PUMP’s total circulating supply.
  • The platform is moving to a 50/50 model: half of net revenue for buybacks and burns, half for development and operations.
  • The change aims to balance token scarcity with sustainable platform growth.

New 50/50 profit model

Under the revised approach, half of Pump.fun’s net revenue from its core products — the bonding curve, PumpSwap, and Terminal — will be automatically directed through a smart contract to purchase and burn PUMP tokens over the next year. The remaining 50% will be retained by the company for product development, hiring, marketing, and potential acquisitions.

The company previously used 100% of its revenue for token buybacks and burns. According to the team, the old model did not fully support long-term growth, prompting the shift to a more balanced allocation. 

One of the largest token burns in crypto history

The burn was executed in two large transactions on the Solana blockchain. This single event ranks among the largest token burns in cryptocurrency history by percentage of circulating supply. 

The move is expected to reduce selling pressure and create a more favorable supply dynamic for PUMP, provided market demand remains stable.

Strategic shift in meme coin platform economics

Pump.fun’s decision reflects a maturing approach to tokenomics in the highly competitive meme coin sector. By reducing token supply while preserving capital for development, the platform seeks to strengthen the long-term value of PUMP and ensure its operational sustainability.

The move comes as the broader meme coin market cools from its 2025 peak, highlighting the importance of disciplined capital management for leading launch platforms.

Earlier, we reported that Pump.fun introduces strict fee rules amid declining activity.

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