The PUMP token gained over 6% in 24 hours after its issuer, Pump.fun, burned roughly $370 million worth of tokens and announced a new programmatic buyback mechanism. The burn, executed in two on-chain transactions, permanently removed approximately 36% of the token's circulating supply from the market.
In a post on X, the Pump.fun team framed the move as a “gesture of trust for the community,” addressing uncertainty around its previous buyback policy. "Today, uncertainty is being addressed head-on by taking a community-first approach," the company said in a statement on April 28.
The burn destroyed all previously repurchased PUMP tokens. In addition, Pump.fun launched a new buyback and burn program, enforced by an irreversible smart contract, that allocates 50% of revenue from its core products to purchase and destroy more PUMP tokens over the next year. According to data from the platform, revenue from its bonding curve, PumpSwap, and terminal will fund the mechanism.
This new model marks a strategic shift from the previous policy of allocating 100% of revenue to buybacks. The team stated that the revised 50% allocation balances supply reduction with the need for long-term operational sustainability. The retained revenue will fund growth initiatives, including product development, marketing, and potential acquisitions, as Pump.fun aims to become a default venue for tokenizing new asset classes on-chain.
This article is for informational purposes only and does not constitute investment advice.
