In a significant change of direction, Pump.fun, a Solana-based token issuance launchpad, has announced that it will no longer dedicate all its revenue to buying and burning its native token, PUMP. Instead, the platform will adopt a 50/50 revenue split, allocating half of its future net revenue to token buybacks and the remaining half to operational expenses, including product development, hiring, marketing, and potential acquisitions.
This new approach replaces the previous policy, which had been in place for nine months and had seen the company burn approximately 36% of PUMP's circulating supply. The decision to alter the revenue allocation strategy was made after a review of the previous policy's effectiveness, with the company's co-founder, Alon Cohen, citing the need for a more balanced approach to ensure the long-term sustainability of the platform.
The change in strategy has been met with a positive response, with PUMP's price increasing by 6.9% in the 24 hours following the announcement. According to DefiLlama data, Pump.fun's gross protocol revenue totaled $971.37 million in 2025, but has declined to an annualized $320 million so far in 2026. Despite this, the company remains optimistic about its future prospects, with the new revenue allocation strategy expected to support ongoing token burns and drive long-term growth.