Pump.fun, a Solana-based token issuance platform, has been redirecting all its revenue towards buying and burning its native token, PUMP, for the past nine months. However, this strategy is being revised, with the company now opting for a 50/50 split between token buybacks and operational expenses. This change aims to allocate half of the revenue from its core products - Pump.fun bonding curve, PumpSwap, and Terminal - towards an irreversible smart contract that buys and burns PUMP tokens on the open market. The remaining half will be utilized for product development, hiring, marketing, and potential acquisitions.
Over the past nine months, Pump.fun has burned approximately 36% of PUMP's circulating supply, which is one of the largest single-event supply reductions in the history of cryptocurrency. The company's co-founder, Alon Cohen, explained that this shift is necessary to ensure the long-term sustainability of the platform. Despite generating over $1 billion in lifetime revenue and using 100% of it for token buybacks, PUMP's price has been trading sideways below its launch valuation. The new strategy is expected to have a bullish impact on the token's price, as the reduced supply and steady demand could create a favorable market setup.
According to DefiLlama data, Pump.fun's gross protocol revenue totaled $971.37 million in 2025 but has annualized to roughly $320 million so far in 2026. The price of PUMP rose 6.9% in the 24 hours following the announcement, with annualized fees running at $802 million and revenue at $416 million.