Pump.fun Announces $370 Million PUMP Token Burn and Automated Buyback-and-Burn Program Based on 50% of Revenue

Pump.fun has permanently removed $370 million worth of circulating PUMP tokens to restore investor confidence and solidify its tokenomics. Announced on April 28, 2026, this massive burn accounts for approximately 36% of the total supply and comes with a firm commitment to allocate 50% of future platform revenue into a programmatic buyback-and-burn mechanism.

This move signifies a shift from passive market intervention to a transparent fiscal policy controlled by code. It is interpreted as a strategic choice to defend the value of the PUMP token within the increasingly competitive DeFi landscape.

The burned tokens amount to approximately 128 billion PUMP, which Pump.fun has steadily repurchased from the open market using platform profits over the past nine months. Pump.fun has been using the majority of its daily revenue for token buybacks, securing approximately $350 million worth by mid-April 2026.

This burn and the new buyback plan are a decisive step toward building community trust and making the platform's operations more transparent.

The previous buyback method had faced criticism from the community for a lack of transparency and insufficient impact on price support. In response, Pump.fun has moved beyond simply burning held inventory to introducing a smart contract-based system that will automatically burn half of the net profit generated over the next year.

A New Standard for Programmatic Policy: The 50% Revenue Rule

The newly introduced 'programmatic buyback and burn' mechanism utilizes 50% of the net profit generated from the platform's primary revenue sources. This system operates via locked, irrevocable smart contracts and executes automatically regardless of market conditions.

• Bonding Curve revenue
• PumpSwap fees
• General transaction fees

The remaining 50% of revenue will be invested in 'Big Bets' for the platform's long-term growth. Co-founder Alon Cohen explained that these funds will be used for product development, ecosystem building, team operations, and strategic expansion over the next five to ten years.

As of April 29, 2026, the market capitalization of the PUMP token is approximately $1.0464 billion, ranking 66th among all cryptocurrencies according to CoinGecko. There are currently about 590 billion tokens in circulation, and this burn is seen as having partially alleviated concerns regarding oversupply.

Market experts analyze that the success of this policy depends on maintaining platform trading volume over the next 12 months. This is because the buyback-and-burn mechanism can only lead to a substantial increase in token value if Pump.fun continues to generate consistent revenue through its core business model.