Thread by @xai

The future of $PUMP

We have burned ALL bought back $PUMP tokens, around $370M worth of purchases (~36% of circulating supply), to gain trust with our community.

On top of that, we have initiated a programmatic buyback *and burn* scheme at 50% of revenue for the next year to instill trust, predictability, and sustainability for the underlying ecosystem - and to remove as much of the supply from circulation as possible.

$PUMP is changing; for the better of token holders, the team and the ecosystem.

Learn more about why we’ve made these decisions and where we’re headed next 👇

Reflecting on pump fun’s journey so far

Pump fun was launched in January 2024 by a group of crypto natives who were tired of endless rugs & presale scams and wanted a safer, scalable system for anyone to tokenize anything in the most successful and fun way possible.

Pump fun rapidly achieved PMF, with Hundreds of Billions of Dollars in lifetime volume, >$1B revenue & some of the biggest success stories of this cycle - all of which were unprecedented achievements in our industry.

Later came the $PUMP token sale, raising $500m from the public in 12 minutes and a total of over $1B which helped to expand the ecosystem over a long term time horizon.

Now, one of our core focuses is to increase trust among the community and decrease uncertainty by burning ~$370M worth of $PUMP tokens (~36% of circulating supply) and initiating an irreversible programmatic buyback & burn scheme with 50% of revenues for the next year.

Why we burned $370M worth of $PUMP tokens

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 initial step involves burning ~$370M worth of $PUMP tokens, around ~36% of the circulating supply, as a gesture of trust for the community.

The burn occurred today at 20:52 UTC across 2 transactions. View the burn transactions here:

solscan.io/tx/5yc86uJeUco…

solscan.io/tx/3yXmFwbvspe…

Today, we’re excited to announce that we have also initiated a buyback scheme under our long term goal to remove and burn as much of the circulating token supply as possible.

$PUMP buybacks & burns have been programmed to occur at 50% of revenue via an irreversible locked smart contract for 1 year.

This means 50% of all net revenue from the pump fun Bonding Curve, PumpSwap & Terminal is automatically used to purchase $PUMP on the open market and immediately burn 100% of those purchases.

Buyback & burns are carried out as follows:

1. Transaction happens on the pump fun Bonding Curve, PumpSwap or Terminal
2. 50% of net fee revenue goes towards a set of intermediary wallets
3. Periodically, all intermediary wallets consolidate funds into 1 of 2 buyback & burn wallets
4. The buyback & burn wallets carry out ongoing buyback & burns

Example transactions (random txn, not affiliated with pump fun):

1 & 2: solscan.io/tx/54ZKMX74e1D…

3: solscan.io/tx/2dxpwjPSJEA…

4 (buy): solscan.io/tx/4MD8thT9XYa…

4 (burn): solscan.io/tx/3yHqeWtVk1Y…

Track ongoing buybacks & burns at fees.pump.fun.

Why 50% buybacks?

Consistent buybacks & burns are the most effective way to remove as much of the circulating $PUMP supply as possible. After being one of the only crypto projects allocating 100% of revenue to buybacks over the past ~9 months and now burning all of those tokens, 50% of future revenue has been dedicated to programmatic buybacks & burns.

The remaining 50% of revenue will be used to build a sustainable business with less reliance on our existing treasury. 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.

Additionally, retained revenues will supplement ongoing initiatives which focus on injecting capital into the pump fun ecosystem. We’ll be able to more aggressively hire to build elite product teams, take bigger bets, and push marketing campaigns across our product suite to build an incredibly successful ecosystem

The goal is for pump fun to live on for decades.

Why 1 year?

The 1 year programmatic buyback and burn scheme was designed specifically with transparency & the community in mind.

Too short of a timeframe means the community may feel uncertain about future programmatic buyback structures, and too long of a timeframe means the underlying ecosystem may suffer as a result of less agility.

We look forward to communicating our plans and platform developments over the next year – with full focus on the trust of the community & ecosystem. We’re incredibly excited for what the next year brings and the years that follow.

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