Pump.fun Launches 0.05% Revenue Share for Token Creators

Pump.fun, a prominent token issuance platform within the Solana ecosystem, has launched a new revenue-sharing model designed to incentivize long-term activity among token creators. This initiative allows creators to earn a portion of the trading fees generated from transactions on their tokens, fostering a more sustainable and engaged community.

The new model, effective from May 12, enables creators to earn 0.05% of the trading volume in Solana (SOL) from transactions conducted on PumpSwap. This revenue-sharing program applies to newly created tokens, those still on the platform’s bonding curve, and even those that have already graduated to the PumpSwap trading pool. Notably, no retroactive rewards are provided, and trading volume prior to May 12 is excluded from the calculation.

Pump.fun has stated that 50% of PumpSwap revenue will be shared directly with creators. This means that for every $10 million in volume, creators earn $5,000 in SOL, which can be claimed anytime through Pump.fun’s creator dashboard. This immediate on-chain payout is a significant shift from the previous model, where creators primarily profited by buying their own coins at launch prices and selling into retail demand. This approach has often led to pump-and-dump behavior and community rug fears, resulting in the launch of millions of low-effort tokens that may have siphoned significant funds from investors.

The platform aims to foster more diverse project types, such as utility tokens, creative experiments, and even media or live-stream-based communities. By providing a recurring source of income based on trading activity, Pump.fun hopes to encourage developers to focus on long-term development and innovation rather than short-term gains. This approach not only benefits the creators but also enhances the overall ecosystem by promoting the creation of high-quality tokens that can drive sustained activity and growth.

Pump.fun has emerged as one of the biggest success stories in the crypto application space since its late 2023 launch, with tens of thousands of tokens issued daily. The platform's influence is evident in the significant price increases and trading volume of memecoins launched on Pump.fun. This new revenue-sharing model is a strategic move to further solidify the platform's position in the memecoin sector and promote a more sustainable and engaged community of token creators.