Pumpfun, a prominent token launch platform on the Solana blockchain, is reportedly preparing to launch its own token through a public offering using a Dutch auction model. The platform, which has generated approximately $572 million in fees and transferred around $386.8 million to Kraken, is currently collaborating with several centralized exchanges (CEXs) to develop the system for the token sale.
The move towards a Dutch auction model aligns with recent industry discussions around innovative token sale mechanisms. Binance co-founder He Yi previously highlighted the potential of Dutch auctions for Initial Exchange Offerings (IEOs) during a recent Ask Me Anything (AMA) session. In a Dutch auction, also known as a descending price auction, the starting price is set high and gradually decreases at a fixed rate. Participants can then bid at a price they deem appropriate.
While Pumpfun co-founder Alon has downplayed rumors of a potential token launch, referring to them as just “rumors,” he has also hinted at a commitment to “rewarding its users properly.” The WuBlockchain team claims to have obtained detailed token issuance documentation that Pumpfun provided to the CEXs, lending further credence to the reports.
However, the timing of the token launch remains uncertain, particularly given the recent spate of lawsuits filed against Pumpfun in the United States. These legal challenges could significantly impact the platform’s plans moving forward.
Internal documents from December 2022, which may no longer be entirely accurate, reportedly outlined a total token supply of 420 million. Of this, 210 million were earmarked for the public sale, with 25% allocated to the team and 22.05% to early investors. Both team and early investor allocations were reportedly subject to a one-year cliff followed by a three-year monthly unlocking schedule. It remains to be seen if these details still hold true given the evolving circumstances surrounding the platform.
