Pump.fun Changes Creator Fee System to Align Incentives

Pump.fun, the leading memcoin launchpad on the Solana blockchain, is making important changes to its creator fee system. This change follows the discovery that the previous fee model was not conducive to the platform’s long-term sustainability. 

Pump.fun New Fee System will Create a Healthy Trading Environment

Recently, token launches on Pump.fun have reached their highest daily levels since the introduction of Dynamic Fees V1 last year, indicating a renewed interest in the platform. Pump.fun’s co-founder, Alon Cohen, in a post on X, stated that the old creator fee structure mainly worked well for organized project teams. However, it did not help most typical memecoins created on the platform. 

More importantly, this system unintentionally shifted risk away from traders, who are vital for Pump.fun’s liquidity and growth. “Traders are the lifeblood of Pump.fun,” Cohen said, stressing that a healthy trading environment is key for sustainable development. 

As such, Pump.fun is rolling out updates to connect creators, teams, and traders better. The main feature is creator fee sharing, which lets project teams split fees among up to 10 wallets. This change aims to encourage teamwork while maintaining transparency and flexibility for distributing rewards.

Additionally, teams can now transfer coin ownership and take back updated control. This gives creators more authority over managing their projects. After launch, creators and CTOs can set specific fee percentages instead of being stuck with fixed terms. This flexibility enables teams to respond better to market changes and community feedback.

Pump.fun Push for Liquidity and Community Growth

In August, the memecoin launchpad platform unveiled the Glass Full Foundation (GFF). Notably, the GFF is not just another funding program. It will inject significant liquidity into ecosystem tokens to support loyal and fast-growing projects.

In cryptocurrency terms, that means money will flow directly into projects that have proven their loyalty and potential. With extra liquidity, it will be easier to buy and sell these tokens, which can bring in more people and attention. GFF could also provide small projects with the help they need to compete in a competitive market.

Following a Record-Breaking Token Launch

The launch of GFF comes shortly after Pump.fun made headlines with the debut of its native token. In July, Pump.fun launched its PUMP token with an initial coin offering (ICO) and raised $600 million in just 12 minutes

A week later, blockchain data showed that Pump.fun bought back millions of dollars’ worth of its own token. This made its supporters even more confident. However, the platform is facing competition from LetsBonk.fun, another memecoin launchpad on Solana.