Solana-based token launch platform Pump.fun is changing one of the most aggressive token support strategies in crypto. Instead of using 100% of platform revenue to buy and burn PUMP, the company will now split future net revenue evenly: 50% for ongoing buybacks and burns, and 50% for business operations and growth.
The shift marks a significant change in how Pump.fun balances token economics with corporate sustainability. Under its previous model, every dollar earned by the platform was used to purchase PUMP on the open market and remove those tokens from circulation. The idea was straightforward: reduce supply continuously and let token value reflect platform success.
A major burn has already taken place
As part of the transition, Pump.fun said it has already burned all PUMP acquired through open-market buybacks over the past nine months. According to the company, those tokens represented roughly 36% of the token’s circulating supply, and the burns were completed in two Solana transactions.
In crypto, a burn permanently removes tokens from circulation, typically by sending them to an address that nobody controls. By share of circulating supply, Pump.fun’s latest burn ranks among the most significant one-off supply reductions seen in the sector.
How the new policy works
Pump.fun said net revenue from its three main products — the Pump.fun bonding curve, PumpSwap, and Terminal — will feed the new system. Half of that revenue will be sent to an irreversible smart contract that automatically buys PUMP on the open market and burns it over the next year. The remaining half will stay with the company for product development, hiring, marketing, and possible acquisitions.
Co-founder Alon Cohen said the business needs retained revenue to keep building for the long term. In the team’s view, buybacks alone were not enough to convince the market of the platform’s durability, nor did they fully resolve questions about the certainty of those buybacks and the eventual use of repurchased tokens.
Strong revenue, weak price response
The background to this decision is not just strategy, but market performance. Despite generating more than $1 billion in lifetime revenue and spending nine months allocating all revenue to buybacks, PUMP has traded sideways for most of 2026 below its launch valuation.
That disconnect appears to have forced a reassessment. Pump.fun remains one of the larger revenue-generating platforms in crypto, but management is now signaling that token support must be paired with reinvestment into the business itself.
Declining revenue adds complexity
There is also a more cautious interpretation of the move. Memecoin launch activity is cyclical, and protocol income has slowed from prior highs. DefiLlama data cited in the report shows Pump.fun generated $971.37 million in gross protocol revenue in 2025, while its 2026 run rate so far implies roughly $320 million annualized.
That matters because 50% of a lower revenue base produces less buyback pressure than 100% of peak-era revenue. Even so, the bullish case remains clear: removing 36% of circulating supply eliminates a substantial amount of potential market overhang. The next test is whether reduced supply and renewed business investment can together improve confidence in PUMP’s long-term outlook.