Pump.fun Burns $370M in PUMP Tokens to Fight Slumping Prices Amid Major Unlock
The volatile nature of memecoins and their infrastructure has been on display lately with some big financial moves. The Solana-based project, Pump.fun has changed the world of creating tokens and, sometimes, has caused division among the different users. Recently, Pump.fun announced that they will be burning $370 million worth of their native PUMP token. It is estimated that this accounts for around 36% of the current circulating supply and is believed to be an attempt to stabilize a project that has had difficulty with price discovery since the beginning. However, there is a major unlock event occurring this week that could cause negative momentum to build regarding this major deflationary event. Inside the $370M Burn and Future Revenue Plans In cryptocurrency, a token burn is a common method where a project takes a significant percentage of its total supply and sends it to a “dead” wallet, making those tokens permanently unusable. By reducing the amount of available supply by more than one-third, the intention of Pump.fun is to benefit the remaining holders. Nonetheless, this team plans on continuing with an ongoing commitment and has stated that 50% of their future Platform Revenue will be allocated to repurchase PUMP Tokens and burn them. As of