Solana-based token launch platform Pump.fun has introduced a revenue-sharing model that allows coin creators to earn reduced trading fees—a strategic move to realign developer incentives and foster long-term community growth.
How the Revenue Sharing Model Works
Pump.fun announced that 50% of PumpSwap revenue will now be shared directly with creators, granting them 5 basis points (0.05%) of all trading volume for their token. Key details:
- Applies to: Newly created tokens, coins still on the platform’s bonding curve, and even “graduated” tokens in the PumpSwap trading pool.
- Payouts: For every $10 million in trading volume, creators earn $5,000 in SOL—claimable anytime via Pump.fun’s creator dashboard.
👉 Discover how Pump.fun is revolutionizing memecoin economics
Aligning Incentives for Sustainable Growth
The Problem with Traditional Memecoin Dynamics
Historically, most Solana memecoin developers relied on a single profit strategy: buying their own token at launch and selling during retail demand. This led to:
- Pump-and-dump schemes
- Community distrust (“rug pulls”)
- Low-effort token launches draining millions from investors
Pump.fun’s Solution
By offering creators recurring revenue tied to trading activity, the platform aims to:
- Diversify projects: Encourage utility tokens, creative experiments, and media-driven communities.
- Reduce predatory behavior: Shift focus from short-term gains to long-term engagement.
As founder Alon Cohen stated:
“Developers can only benefit by selling early at the lowest price, which breeds mistrust. Doxxed developers trying innovative approaches are instantly suspected of malice—this isn’t sustainable.”
Impact on the Memecoin Ecosystem
Since its late-2023 launch, Pump.fun has become a crypto breakout success, with:
- Thousands of tokens launched daily
- Billion-dollar market cap hits like dogwifhat (WIF)
The revenue-sharing feature could further:
| Benefit | Explanation |
|---|---|
| Stability | Reduces volatility by incentivizing holders. |
| Innovation | Attracts builders focused on utility over hype. |
| Trust | Transparent payouts align creator and community interests. |
👉 Explore Pump.fun’s latest updates for creators
FAQs
Q: How do creators claim their revenue share?
A: Earnings auto-accumulate and can be withdrawn anytime via the Pump.fun creator dashboard.
Q: Does this apply to older tokens?
A: Yes—both new tokens and “graduated” PumpSwap-listed coins qualify.
Q: What’s the minimum volume to earn payouts?
A: No minimum; earnings scale linearly with trading activity.
Q: How does this compare to other launchpads?
A: Pump.fun is unique in offering real-time, on-chain revenue sharing—most competitors lack this feature.
Q: Can developers still “rug pull”?
A: While possible, recurring revenue reduces the incentive to abandon projects prematurely.
The Future of Token Launches
By rewarding sustained engagement, Pump.fun’s model could redefine memecoin economics, prioritizing community resilience over fleeting hype. As Cohen emphasized:
“Our #1 goal is expanding the ecosystem. Bigger communities mean more value for everyone.”
For creators, this is a chance to monetize influence without compromising trust—a win-win for crypto’s next growth phase.
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