The Solana memecoin launchpad will now split revenue evenly between buybacks and operations, replacing a nine-month policy that funneled every dollar into burning
$PUMP Solana-based token issuance launchpad Pump.fun has, to date, run a simple model: every dollar of revenue has gone toward buying and burning its own token. In theory, the constant supply reduction was supposed to steadily prop up PUMP's price and align the token's value with the platform's success.
But that model is now history after a review of the previous 100% buyback showed it wasn't fully working in the company's favor.
The firm said in an X post
that it would shift to a 50/50 split, in which half of all future net revenue from the Pump.fun bonding curve, PumpSwap, and Terminal, the company's three core products, flows into an irreversible smart contract that automatically buys PUMP on the open market and burns it for the next year.
The other half stays with the company for product investment, hiring, marketing, and potential acquisitions. The previous policy was to allocate 100% of revenue to buybacks.
Pump said it had burned all PUMP tokens it had bought back from the open market over the past nine months, or roughly 36% of that token's circulating supply, in two transactions on Solana.
Burn refers to the permanent removal of tokens from circulation, usually by sending them to a crypto wallet address not controlled or held by anyone. PUMP's burn announcement is one of the largest single-event supply reductions in crypto history by share of circulating tokens.
Co-founder Alon Cohen explained the change in a follow-up post on X, arguing the business needs the other half of revenue for product investment, hiring, marketing, and potential acquisitions, to keep Pump.fun alive for "decades to come."
Part of the reason the move was necessary is the price chart.
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