Pumpfun has announced a revision to its tokenomics strategy, allocating 50% of net income to buy back and immediately burn PUMP tokens. According to ChainCatcher, this change replaces the previous approach of using 100% of income for buybacks that were retained in the treasury. The adjustment comes in response to community criticism that the prior buyback strategy did not effectively support the token's price.
The 50% buyback allocation will cover net income from the Bonding Curve, PumpSwap, and Terminal products, while the remaining 50% will be directed towards operations, recruitment, and strategic investments. Previously, the company disclosed that about 36% of the circulating supply of PUMP had been burned through buybacks. Following the announcement, the price of PUMP experienced a brief increase.
Co-founder Alon stated that the initiative aims to establish a sustainable mechanism for supporting the token's value.