Pump.fun, a Solana-based token launchpad, has been operating under a model where all revenue was used to buy back and burn its native token, PUMP. However, after nine months, the company has decided to change its approach. Instead of allocating 100% of revenue to token buybacks, Pump.fun will now split its revenue evenly between buying back PUMP tokens and funding operational costs. This strategic shift aims to strike a balance between reducing the token's supply and investing in the company's growth and development.
The new policy will see half of the revenue from Pump.fun's core products - the bonding curve, PumpSwap, and Terminal - being used to buy back PUMP tokens, which will then be permanently removed from circulation. The remaining half will be utilized for product development, hiring, marketing, and potential acquisitions. This move is expected to have a significant impact on the token's price and the company's long-term sustainability. According to co-founder Alon Cohen, the change is necessary to ensure the company's survival and success in the years to come.
The price of PUMP has been trading sideways for most of 2026, despite the company generating over $1 billion in revenue. The new strategy is seen as a turning point for the token and the company, with some analysts predicting a bullish outlook due to the reduced supply and steady demand. However, others have raised concerns about the cyclical nature of memecoin launchpad volume and the potential decline in revenue.