Pump.fun Burns $370M in PUMP Tokens and Launches Major Buyback Program

Pump.fun, built on the Solana network, executed a massive burn of 127 billion PUMP tokens worth approximately $370 million, removing 36% of the total supply. This strategic shift transitions the platform to a net revenue-based mechanism, where 50% of profits will be funneled into an irreversible smart contract for buybacks. While co-founder Alon Cohen emphasized long-term sustainability, the move has sparked dissatisfaction among users concerned about future Airdrop distributions. Analysts noted that the use of smart contracts adds technical transparency to the new policy. However, market experts suggest that the continuation of PUMP's price momentum now depends heavily on sustained user demand following the burn event. This event remains one of the most significant capital reallocations in the recent crypto landscape, highlighting the tension between operational changes and community expectations.