Pump.fun Burns $370M Tokens, Starts 50% Buyback Plan

• Pump.fun burned $370M in PUMP tokens, removing 36% of supply to address transparency concerns and reset token structure.
• New buyback plan allocates 50% of revenue to automated purchases and burns via a locked smart contract over one year.
• Remaining revenue funds operations, supporting growth while balancing long-term ecosystem development and supply reduction.

Pump.fun burned about $370 million worth of PUMP tokens, removing roughly 36% of circulating supply in two transactions. The burn occurred at 20:52 UTC, according to the platform. The move comes as the project introduces a one-year programmatic buyback and burn plan using 50% of revenue to address trust concerns raised by its community.

Burn Removes Large Supply and Resets Token Structure

According to Pump.fun, the burn included all previously bought-back tokens accumulated over nine months. During that period, the platform allocated 100% of revenue to buybacks. However, the team said uncertainty remained around how those tokens would be used.

Therefore, the project removed them from circulation permanently to clarify token supply. The burn reduced circulating supply by about 36%, marking one of the largest supply adjustments for the token. The action directly addressed concerns about transparency and long-term token management.

Programmatic Buybacks Set for One-Year Cycle

Following the burn, Pump.fun introduced a structured buyback system tied to revenue streams. The model allocates 50% of net revenue from its bonding curve, PumpSwap, and terminal products. These funds move through intermediary wallets before consolidating into designated buyback and burn wallets.

From there, the system purchases PUMP tokens on the open market and burns them. The process operates through a locked smart contract designed to run for one year. According to the platform, this structure aims to provide predictable and continuous supply reduction.

Revenue Supports Operations and Ecosystem Growth

Meanwhile, the remaining 50% of revenue will fund operations, hiring, and product development. Alon said the platform requires retained revenue to sustain growth and maintain flexibility. He noted that relying entirely on buybacks could limit long-term expansion.

Pump.fun launched in January 2024 and reported over $1 billion in revenue and large transaction volumes. The project also raised $500 million in a public token sale completed within 12 minutes. The latest changes shift its focus toward balancing supply reduction with ongoing ecosystem investment.

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