In a significant departure from its previous strategy, Pump.fun, a Solana-based token issuance launchpad, has announced that it will no longer dedicate 100% of its revenue to buying and burning its native token, PUMP. Instead, the platform will adopt a 50/50 revenue split, with half of its net revenue from key products being channeled into an irreversible smart contract for token buybacks and burns, and the other half allocated for operational expenses, including product investment, hiring, marketing, and potential acquisitions.
This move marks a shift away from the company's nine-month policy, during which it funneled every dollar of revenue into buying and burning PUMP tokens, a strategy aimed at propping up the token's price by reducing its supply. The previous approach saw the company burn approximately 36% of PUMP's circulating supply over two transactions on Solana. According to co-founder Alon Cohen, the revised strategy is necessary to ensure the long-term sustainability of Pump.fun, allowing the company to invest in its products, talent, and growth initiatives.
The decision comes as PUMP's price has largely traded sideways below its launch valuation in 2026, despite the company generating over $1 billion in lifetime revenue and using 100% of its revenue for token buybacks over the past nine months. While the move may be seen as a positive development for the token's price in the long term, due to the reduced supply and ongoing burns, it also raises concerns about the potential impact of declining revenue on the size of future burns. As the memecoin launchpad market is subject to cyclical fluctuations, Pump.fun's gross protocol revenue has decreased from $971.37 million in 2025 to an annualized $320 million in 2026, according to DefiLlama data.
Nevertheless, if the company can maintain a significant portion of its revenue, the ongoing burns could lead to a meaningful reduction in the token's supply, potentially creating a bullish setup for PUMP's price.