Pump.fun Burns $370M PUMP Tokens, Sets 50% Net Income Buyback/Burn
Pump.fun announced it burned all repurchased PUMP tokens worth about $370M on Tuesday, removing roughly 36% of circulating supply. The goal is to improve buyback certainty and add deflationary pressure.
For the next 12 months, Pump.fun will allocate 50% of its future net income to an automatic PUMP repurchase-and-burn program. Funds will come from income sources including the bonding curve, PumpSwap and Terminal, with buys executed through an irreversibly locked smart contract.
The remaining 50% of net income will support hiring, major investments, and marketing. Pump.fun also reported $1B cumulative revenue on Solana since launch in Jan 2024.
Traders linked the immediate rebound in PUMP to the burn event. The article also flags cautious Solana (SOL) conditions (RSI in the 40s, bearish Supertrend/EMA). Key levels mentioned: SOL support near ~$83.3 and resistance around ~$85.4–$87.2.
Trading takeaway for PUMP: this is a supply-scarcity catalyst, but follow-through depends on sustained platform activity and demand—initial momentum may fade if revenue or volume declines.
Bullish
The burn removes a large portion of PUMP supply (about 36%), which typically supports price via supply reduction and stronger tokenomics optics. The follow-on 50% net-income buyback-and-burn plan extends the deflationary narrative beyond a one-off event, which can sustain buy-side interest if revenue holds up.
However, the article also highlights broader market caution for SOL and implies that PUMP demand must remain supported; if Pump.fun activity or income slows, the market may fade the initial rebound. Net effect is positive for PUMP in the near term, but traders should watch for follow-through versus a momentum retrace.