Pump.fun is Switching its PUMP Burning Strategy to SOL
Burn Mathematics and Revenue Distribution of SOL-Based Pump.fun Pump.fun burned %36 of the circulating PUMP supply in nine months with two Solana transactions from revenue generated by its three core products like bonding curve, PumpSwap, and Terminal. This was recorded as one of the largest single supply reductions in crypto history. Burning involves sending tokens to an address that no one controls, permanently removing them from circulation. In the previous model, every dollar of revenue supported PUMP, but the price traded horizontally below the launch value throughout 2026. Sources like DefiLlama and team shares indicate that lack of trust and uncertainty in the business model triggered this situation. Although the platform has generated nearly a billion dollars in lifetime revenue, it declined from the 971,37 million dollar peak in 2025 to 320 million dollars annually in 2026. The strategy change carries the risk that shrinking revenue due to the cyclical nature of memecoin volume could lead to smaller burns. On the other hand, the mathematics of eroding the remaining supply is positive: since half of future revenue is locked into weekly burns, supply pressure against demand will decrease. Rare projects like Pump.fun that generate real cash flow at this scale signal to