BREAKING: PumpFun Announces It Has Burned a Large Portion of Its Supply and Will Now Conduct a Substantial Token Buyback

PumpFun, operating within the cryptocurrency ecosystem, announced a comprehensive burn and buyback plan for its native token, $PUMP, which will directly impact supply and trust dynamics. The platform burned all $PUMP tokens it had previously collected through buybacks, removing approximately $370 million worth of supply from circulation. This amount is said to represent roughly 36% of the circulating supply.

According to the company’s statement, the incineration process was carried out in two separate operations at 23:52 UTC+3 on the same day. This step aims to eliminate the lack of trust and uncertainties that have arisen, particularly in recent months.

PumpFun also announced the implementation of a programmatic buyback and burn mechanism covering 50% of its revenue over the next year. This system, which will operate via a locked and irrevocable smart contract, will automatically use half of the net revenue generated from the platform’s Bonding Curve, PumpSwap, and Terminal products to purchase $PUMP from the market, with all purchased tokens being immediately burned.

In the new model, the buyback process will work as follows: revenue from transaction fees will be collected in intermediate wallets, then these funds will be transferred to the main buyback wallets at regular intervals, where regular burning operations will be performed.

The company acknowledged that while it had previously allocated approximately 100% of its revenue to buybacks for about nine months, uncertainties surrounding the use of these tokens had led to trust issues. Therefore, it stated that a more transparent and predictable model was adopted with the burning of all accumulated tokens.

The remaining 50% of revenues will be used for operational sustainability, product development, marketing activities, and strategic investments. PumpFun management stated that a model focused entirely on combustion could weaken the company’s treasury and limit its growth potential in the long run.

*This is not investment advice.