Pump.fun Overhauls Fee System to Restore Order in Solana Memecoin Market

Source: CoinTribune Original Title: Crypto : Pump.fun puts order back into the memecoin ecosystem Original Link: https://www.cointribune.com/en/crypto-pump-fun-puts-order-back-into-the-memecoin-ecosystem/

Overview

Memecoins operate at an unusual pace—everything accelerates rapidly, then stalls. On Solana, Pump.fun has been a primary driver of this dynamic. However, as platforms scale, every operational decision becomes contentious. Even something as simple as fee structure becomes politically charged.

Key Updates

• Pump.fun revises its creator fee model for Solana memecoins
• The platform now enables revenue distribution across up to 10 wallets
• New control tools introduced for CTO teams and administrators
• Objective: limit abuses, clarify token management, and align incentives with market dynamics

Recalibrating Incentives in the Crypto Ecosystem

Following the Solana memecoin explosion, Pump.fun announced a comprehensive overhaul of its creator fee system, introducing fee-sharing mechanisms and enhanced controls for CTO teams and admins. The updated system allows revenue to be distributed to up to 10 wallets post-launch and enables coin ownership transfers and revocation of certain update authorities.

Co-founder Alon Cohen made a notable observation—a rarity in crypto—that the previous mechanism may have “distorted” incentives. He explained that while Dynamic Fees V1 did generate activity, it failed to produce sustainable market behavior.

The underlying logic is straightforward: if rewards concentrate at token creation, creators optimize for launching tokens rather than building viable projects. A memecoin without active traders quickly becomes hollow—impressive for moments, then liquidity disappears.

Cohen argues the old model encouraged “low-risk” creation over “high-risk” trading, which is problematic. Crypto traders remain the true source of liquidity and volume. Without them, even compelling narratives cannot sustain spreads.

Pump.fun observed a genuine peak early on, with new creators launching tokens and even livestreaming. Platform volumes on its bonding curve more than doubled during this period before momentum declined.

Fee-Sharing: Greater Transparency, Less Friction

The most tangible innovation is the fee-sharing mechanism. Creators and CTO admins can now designate a percentage and route it to multiple addresses, enabling clearer distributions: team, treasury, moderation, and contributors.

Crucially, Pump.fun emphasizes that the platform itself will not capture these fees. Cohen frames the mechanism as a tool “for the trenchers”—those actively building, not the parent company. Fees remain claimable at any time.

Control mechanisms carry equal importance. The ability to transfer coin ownership or revoke update authorities builds trust. Too many projects stall in “CTO” status due to unclear governance. Pump.fun seeks to make this transition more transparent.

Market Context

This overhaul arrives in a less euphoric environment than 2024. Pump.fun remains Solana’s dominant launchpad, leveraging frictionless token creation and standardized liquidity pathways.

However, dominance is not guaranteed. In July, a competitor called LetsBonk briefly surpassed Pump.fun in volume and revenue before momentum reversed. Pump.fun has reinforced its position through token buybacks and the “Project Ascend” payout program, executing a record $436M withdrawal as the memecoin era enters a maturation phase.