Pump.fun burns $370M of PUMP, pledges 50% revenue buybacks

Pump.fun announced it destroyed $370 million worth of its native PUMP tokens and will allocate 50% of future platform revenue to buyback-and-burn purchases. The platform said the actions are intended to permanently reduce circulating supply and direct a steady portion of income into token repurchases.

The burn was executed by sending PUMP tokens to an address that cannot be accessed, removing those tokens from circulation. Pump.fun said future purchased tokens will be sent to the same irrecoverable address.

Under the plan, half of revenue generated going forward will be used to buy PUMP on the open market. The announcement did not identify which specific revenue streams will fund the purchases, nor did it provide numerical revenue targets or a timeline for implementation. Pump.fun said buybacks will occur periodically and that details on execution cadence and reporting will be shared with the community.

Investors can observe future buybacks through on-chain transactions when purchases and transfers to burn addresses are recorded. The project did not set a cap on the amount of revenue that may be used in any single period.

Token burns remove tokens from circulation by transferring them to addresses from which they cannot be retrieved. Buyback-and-burn programs use project revenue to buy tokens on exchanges and then retire them, creating a repeatable process for supply reduction.