Pump.fun to Share 25% Revenue with PUMP Token Holders

Pump.fun has announced plans to allocate 25% of its platform revenue to holders of its PUMP token, according to sources familiar with the matter. This decision comes as part of a broader strategy to enhance user engagement and long-term sustainability. The platform has been actively communicating this arrangement to insiders ahead of its public announcement.

The Initial Coin Offering (ICO) for the PUMP token is scheduled to go live on July 12. This move is expected to provide token holders with a direct stake in the platform's success, encouraging greater participation and loyalty. The revenue-sharing model is designed to increase the theoretical value of the PUMP token, making it an attractive investment for both existing and new users.

Dragonfly Capital’s Haseeb Qureshi highlighted the potential of the PUMP token, noting that it could become one of the highest gross revenue tokens in the cryptocurrency market. This sentiment is echoed by Mike Dudas of 6th Man Ventures, who predicted that there would be some element of putting revenue to work on behalf of token holders, along with a component of a token that rewards platform users. 6th Man Ventures is an investor in pump.fun.

According to the tokenomics shared by the team, 33% of the PUMP tokens will be sold during the ICO, with 13% allocated to existing investors. The fully diluted value of the PUMP token is estimated to be around $4 billion. Of the 33% allocated for the ICO, 18% is reserved for institutional purchasers, while 15% is open to the public. This distribution ensures that both private and public sale purchasers are on the same terms, with an estimated $720 million from private investors at the $4 billion fully diluted value.

The platform has emphasized that while the token will be fully functional at launch, thorough consideration is being given to utility mechanisms such as fee rebates, token buybacks, or other incentives and promotions. However, investors from the US and UK will not be able to participate in the ICO.

Pump.fun's strategy aligns with the broader trend in the cryptocurrency market, where platforms are increasingly focusing on user-centric models to drive growth. By sharing a significant portion of its revenue with token holders, Pump.fun aims to create a more engaged and invested user base. This approach is expected to foster a sense of community and shared ownership, which can be crucial for the long-term success of the platform.

In summary, Pump.fun's decision to share 25% of its revenue with token holders is a strategic move aimed at enhancing user engagement and long-term sustainability. The launch of the PUMP token via ICO and the implementation of a revenue-sharing model are expected to drive growth and attract more users to the platform. This initiative is part of a broader strategy to create a more engaged and invested user base, fostering a sense of community and shared ownership.