Pump.fun, a Solana-based token launchpad, has announced a significant change in its revenue allocation strategy. Previously, the platform had been dedicating 100% of its revenue to buying back and burning its native token, PUMP. However, after a review of this policy, the company has decided to adopt a 50/50 split, where half of the revenue will be used for token buybacks and the other half will be allocated for operational expenses, including product development, hiring, marketing, and potential acquisitions. This change marks a shift from the previous approach, which had been in place for nine months and had resulted in the burning of approximately 36% of the circulating PUMP tokens.
The new strategy is aimed at ensuring the long-term sustainability of the platform, as stated by co-founder Alon Cohen, who emphasized the need for the company to invest in its growth and development to remain viable for years to come. The price of PUMP has been trading sideways for most of 2026, despite the previous buyback policy, and the new approach is seen as a turning point for the token. While there are concerns about the cyclical nature of memecoin launchpad volume, the reduced supply of PUMP tokens due to the burns could potentially lead to a bullish setup for the token.
According to DefiLlama data, Pump.fun's revenue has been declining, but the ongoing burns could still have a significant impact on the token's price. The announcement of the new strategy has already led to a 6.9% increase in the price of PUMP, and the platform's annualized fees and revenue, which stand at $802 million and $416 million, respectively, demonstrate its potential for generating real cash flows at scale.