Pump.fun Burns $370M of PUMP Tokens, Rolls Out One-Year Buyback-and-Burn Using 50% of Revenue

Pump.fun has burned about $370 million worth of PUMP tokens, permanently removing roughly 36% of circulating supply in two transactions executed at 20:52 UTC, the platform said. The move is intended to resolve community concerns around transparency and to reset the project's token supply structure. The burn covered all tokens accumulated through prior buybacks over the past nine months. During that period, Pump.fun directed 100% of revenue into buybacks, but the team said uncertainty persisted over how those tokens might ultimately be used. By taking them out of circulation, the project aims to provide clarity on supply and long-term token management. Following the burn, Pump.fun introduced a programmatic buyback-and-burn framework scheduled to run for one year. Under the plan, 50% of net revenue from its bonding curve, PumpSwap, and terminal products will be routed through intermediary wallets, consolidated into designated buyback and burn wallets, then used to purchase PUMP on the open market and burn it. The mechanism is governed by a locked smart contract designed to automate the process and deliver a more predictable pace of supply reduction. The remaining 50% of revenue will be retained for operations, hiring, and product development. Alon said keeping a portion of revenue is necessary to support growth and preserve flexibility, warning that dedicating all revenue to buybacks could constrain long-term expansion. Pump.fun launched in January 2024 and has reported more than $1 billion in revenue alongside heavy transaction volumes. The project also raised $500 million in a public token sale that sold out in 12 minutes. The latest changes signal a shift toward balancing token supply reduction with continued investment in the broader ecosystem.