Pump.fun Shifts From Full Token Burns to 50% Model

TLDR

• Pump.fun has ended its policy of allocating 100% of revenue to token buybacks and burns.
• The company will now split net revenue, with 50% funding automated token burns and 50% supporting operations.
• Pump.fun burned about 36% of PUMP’s circulating supply in two Solana transactions.
• The new smart contract will automatically buy and burn PUMP tokens over the next year.
• DefiLlama data shows Pump.fun generated $971.37 million in gross revenue in 2025.

Pump.fun has changed its token burn policy after reviewing nine months of full revenue buybacks. The Solana-based launchpad will now split revenue between token burns and internal operations. The company confirmed the update in a post on X and executed large token burns this week.

Pump.fun Adjusts Revenue Allocation Model

Pump.fun previously directed 100% of its net revenue toward buying and burning PUMP tokens. However, the company said that model did not fully support long-term operations. It will now allocate 50% of net revenue to automated buybacks and burns, while retaining the remaining 50% for business growth.

The company stated that half of future net revenue will flow into an irreversible smart contract. The contract will purchase PUMP tokens on the open market and burn them over the next year. Meanwhile, the retained portion will fund product development, hiring, marketing, and acquisitions.

Co-founder Alon Cohen addressed the decision on X and explained the operational need. He said the company requires resources to keep Pump.fun operating for “decades to come.” He also cited concerns about trust in the certainty and purpose of buybacks.

The team acknowledged that PUMP traded below its launch valuation for most of 2026. This occurred despite nine months of full revenue buybacks and over $1 billion in lifetime revenue. The company said there was “a lack of trust in the longevity of the business.”

PUMP Supply Shrinks as Revenue Declines

Pump.fun confirmed it burned all PUMP tokens acquired through buybacks over the past nine months. The burns removed roughly 36% of the circulating supply in two Solana transactions. The company described the event as one of the largest supply reductions by circulating share.

Burning permanently removes tokens by sending them to an inaccessible wallet address. As a result, the circulating supply decreases and those tokens cannot reenter the market. The company said the smart contract will continue weekly burns using half of net revenue.

DefiLlama data shows Pump.fun generated $971.37 million in gross protocol revenue during 2025. However, 2026 revenue annualizes at roughly $320 million so far. Lower revenue means smaller burn volumes under the new 50% structure.

DefiLlama also reports annualized fees of $802 million and revenue of $416 million. Pump.fun ranks among crypto platforms producing large cash flows. PUMP rose 6.9% within 24 hours following the announcement on Wednesday.

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