Pump.fun ditches its 'use all revenue to burn tokens' policy as model fails to support price
Solana memecoin launchpad Pump.fun is shifting from a 100% token-burn revenue model to a 50/50 split between buybacks and operational growth.Summary
Pump.fun, a prominent Solana-based memecoin launchpad, is ending its nine-month policy of using 100% of its revenue to buy back and burn its native token, PUMP. Despite burning approximately 36% of the token's circulating supply, the company observed that the strategy failed to significantly boost the token's market price. Moving forward, the platform will allocate 50% of its net revenue to ongoing token buybacks and burns, while the remaining 50% will be retained for product development, hiring, marketing, and acquisitions. Co-founder Alon Cohen emphasized that this adjustment is necessary to ensure the long-term sustainability of the business, as the platform seeks to transition from a pure buyback model to a more stable, growth-oriented operational framework.
(Source：CoinDesk)