PiCK
Pump.fun to Cut Revenue Allocated to Buybacks to 50% From 100%, Use Rest for M&A
Summary
- Pump.fun said it will cut the share of revenue allocated to token buybacks to 50%% from 100%%, with the remaining 50%% to be used for business expansion.
- For the next year, 50%% of all net revenue will automatically be used for token purchases, and 100%% of those purchased tokens will be immediately burned.
- The 50%% not used for buybacks will be deployed for mergers and acquisitions (M&A) and new businesses, complementing the company’s existing plan to invest capital into the Pump.fun ecosystem.
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Pump.fun, a Solana-based meme-coin issuance platform, will reduce the share of revenue allocated to token buybacks to 50% from 100%.
In a post on its official X account on April 29, Pump.fun said it had been one of the few crypto projects to devote 100% of revenue to buybacks over the past nine months. Going forward, it will use 50% of future revenue for buybacks and burns.
The policy will remain in effect for the next year. Pump.fun said 50% of all net revenue will be used automatically to buy tokens, and all of those purchased tokens will be burned immediately.
The remaining 50% of revenue will be used to expand the business. That portion will be directed to mergers and acquisitions and new business initiatives.
Pump.fun said retaining part of its revenue for operations and growth would reduce the risk of limiting treasury assets to burns rather than deploying them into high-efficiency strategic investments. The retained revenue will also complement its existing plan to deploy capital into the Pump.fun ecosystem, it said.
As of 8:46, Pump.fun was trading at $0.001849 on CoinMarketCap, up 5.86% from a day earlier. The token was down 4.3% from a week ago.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
