Solana-based token-issuing launchpad Pump.fun is running a simple model so far. This means every dollar of revenue goes toward buying and burning its own tokens. In theory, a constant decline in supply should have steadily supported supply. $pumpAdjust the price of the token and align the value of the token with the success of the platform.
However, after reviewing the previous 100% stock buyback, it was determined that it did not fully work in the company’s favor, and this model is now history.
The company said in an XPost that half of the future net revenue from its three core products, Pump.fun Binding Curve, PumpSwap, and Terminal, will transition to a 50/50 split where half of the future net revenue from the company’s three core products, Pump.fun Binding Curve, PumpSwap, and Terminal, will flow to irreversible smart contracts that automatically purchase. $pump It is sold on the open market and burned for the following year.
The other half will remain with the company for product investments, recruiting, marketing, and potential acquisitions. The previous policy was to allocate 100% of proceeds to share buybacks.
I said all the pumps were on fire. $pump The two transactions on Solana represent the tokens the company has bought back from the open market over the past nine months, or about 36% of the token’s circulating supply.
Burning refers to permanently removing tokens from circulation, typically by sending them to a cryptocurrency wallet address that is not controlled or held by anyone. $pumpThe burn announcement is one of the largest single-event supply reductions in crypto history by share of circulating tokens.
Co-founder Aron Cohen explained the change in a follow-up post on X, arguing that in order for Pump.fun to survive “for decades to come,” the other half of its revenue needs to go toward product investments, hiring, marketing, and potential acquisitions.
One of the reasons we needed to migrate was the price list.
$pump Despite spending 100% of its proceeds on token buybacks for nine months and generating over $1 billion in lifetime revenue, it spent most of 2026 trading below its launch valuation.
“Despite being one of the largest revenue generating platforms in cryptocurrencies and allocating 100% of revenue to buybacks, we believe there was a lack of confidence in the longevity of the business, the certainty of buybacks, and the use of redeemed tokens,” the team said in X.
Today is a turning point $pump And a fun pump
I’d like to explain more about the big picture and where we’re actually going.
Over the past approximately nine months, 100% of the proceeds have gone toward stock buybacks. Basically, no other cryptocurrency platform has achieved this at this scale.
But we… https://t.co/3WTAHH1fUX
— Aron (@a1lon9) April 28, 2026
However, it can also be a bear. Memecoin Launchpad’s volume is cyclical and the average value reverses. According to data from DefiLlama, Pump.fun’s total protocol revenue reached $971.37 million in 2025, but is expected to reach an annualized rate of approximately $320 million by 2026.
50% of declining revenue results in less loss than 100% of peak revenue.
The bull case is the calculation of remaining tokens. Burn 36% $pump What was in circulation removes a large block of supply that could hurt the market.
Locking 50% of future revenue into further burn means more tokens will be permanently destroyed each week, regardless of what the team decides later on.
If Pump.fun continues to generate even half of its 2025 revenue, the ongoing fires will wipe out a significant portion of what remains over the next 12 months. Low supply relative to steady demand could create a bullish setup that hasn’t existed since the token’s launch.
$pump The stock rose 6.9% in the 24 hours following Wednesday’s announcement. With annualized fees of $802 million per DefiLlama and $416 million in revenue, Pump.fun belongs to a rare category of crypto projects that generate significant real cash flow.
