PUMP token rallied by more than 6% over the past 24 hours after Pump.fun burned roughly $370 million in tokens, defying a downturn that pulled major large-cap assets lower.
The burn removed about 36% of the circulating supply across two on-chain transactions, according to the platform.
In a post on X, Pump.fun framed the move as a “gesture of trust for the community.”
“Over the past ~9 months, despite being one of the biggest revenue-generating platforms in crypto and allocating 100% of revenue to buybacks, we believe there was a lack of trust in the longevity of the business, the certainty of buybacks, and what the bought-back tokens would be used for. Today, uncertainty is being addressed head-on by taking a community-first approach,” the post read.
In addition to the burn, the team also announced the launch of a structured buyback and burn program. Under the model, 50% of revenue generated from core products, including the bonding curve, PumpSwap, and its terminal, will route through intermediary wallets.
Those funds will then consolidate into 1 or 2 wallets that purchase PUMP and burn it. Notably, the schedule is enforced by an irreversible smart contract that runs for 1 year.
According to the team, the revised 50% allocation balances supply reduction with long-term operational sustainability. The remaining revenue will be retained to fund growth initiatives, including product development, hiring, marketing, and potential acquisitions
“If we forgo retaining a portion of revenues for operations and growth, we run the risk of our treasury being throttled by burn rather than being used for high-impact strategic investments, such as impactful acquisitions & new product ventures,” Pump.fun added.
Article Source: beincrypto.com
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