Pump.fun said it burned about $370 million worth of PUMP tokens, removing roughly 36% of circulating supply in two transactions. The platform said the burn took place at 20:52 UTC and framed the move as a response to community concerns over transparency and token supply clarity.
According to the project, the burn covered all previously repurchased tokens accumulated over the past nine months. During that stretch, Pump.fun had been allocating 100% of revenue to buybacks, but questions remained about what would eventually happen to those tokens. The project chose to remove them from circulation permanently.
Previously repurchased tokens are now permanently out of supply
The burn produced a sharp change in the token’s supply profile. By destroying the entire stock of bought-back tokens, Pump.fun eliminated a major source of uncertainty around whether those holdings might return to the market at a later date. The adjustment stands out as one of the largest supply changes for PUMP.
The platform said the action directly addressed concerns tied to transparency and long-term token handling. Buybacks had already been happening, but without a defined end state for the acquired tokens, the market lacked a clear view of effective supply. That ambiguity is now gone for the burned portion.
New model sends 50% of revenue into automated market buybacks
After the burn, Pump.fun introduced a structured system that links buybacks to operating revenue. Under the new setup, 50% of net revenue from its bonding curve, PumpSwap, and terminal products will be directed to buybacks and burns. The funds are routed through intermediary wallets before being consolidated into designated buyback and burn wallets.
From there, the system buys PUMP on the open market and burns the tokens. Pump.fun said the process runs through a locked smart contract designed to operate for one year. The goal, according to the platform, is to make supply reduction continuous and predictable rather than discretionary.
The other half of revenue stays with the business
The remaining 50% of revenue will go toward operations, hiring, and product development. Alon said retained revenue is necessary to support growth and preserve flexibility. In his view, sending all income into buybacks would restrict the project’s ability to expand over time.
Pump.fun launched in January 2024. The project said it has generated more than $1 billion in revenue and recorded large transaction volumes, while its public token sale raised $500 million in just 12 minutes. The latest change puts token supply reduction and ongoing ecosystem spending into the same operating framework.