The platform for launching meme coins Pump.fun plans to implement a revenue distribution mechanism among $PUMP token holders, The Block reports, citing sources close to the project team. This move is part of the preparation for a token sale of $1 billion at a platform valuation of $4 billion. The total issuance of PUMP could amount to 1 trillion tokens, of which 10% is reserved for airdrop, and 25% for open distribution.
The mechanism involves distributing a portion of the platform's revenue, possibly including profits from the decentralized exchange PumpSwap, through a buyback utility structure. Tokens will be fully unlocked at the time of TGE (Token Generation Event). Although the exact share of revenue for distribution remains unknown, the initiative aims to enhance the attractiveness of the PUMP token for investors.
Launched in January 2024, Pump.fun has already generated $622 million in revenue from fees, becoming a key player in the meme coin market on Solana. However, the platform has faced criticism due to a high percentage of scam projects (98%) and lawsuits in the US, where tokens are considered unregistered securities.
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