PUMP FUN OVERHAULS CREATOR FEES TO PROMOTE TRADING ACTIVITY

Pump.fun is overhauling its creator fee system to address imbalances in the platform's incentives, which currently favor low-risk token creation over high-risk trading according to reports. The new fee-sharing model allows creators to distribute fees across up to 10 wallets, improving transparency and trust as documented. The changes aim to better align incentives between creators and traders, encouraging liquidity generation and trader participation according to analysis.

Pump.fun has introduced a new fee-sharing model in response to criticisms that the previous system failed to incentivize high-risk trading as reported. Co-founder Alon Cohen noted that the Dynamic Fees V1 system unintentionally favored token creation at the expense of trading activity according to a statement. This imbalance created a dangerous environment, as traders are essential for liquidity and volume generation on the platform as noted.

The updated model allows creators to distribute fees across multiple wallets, making it easier to share revenue with contributors and supporters according to the co-founder. This shift aims to align incentives with trader participation, reducing rug pulls and promoting sustainable market behavior as stated. The platform also introduced a buyback program that has reduced the PUMP token supply by 14.75%, enhancing its value proposition according to market analysis.

How Does the Fee Model Affect Platform Activity?

Pump.fun's weekly trading volume has reached a new all-time high of $6.601 billion, indicating increased on-chain activity as reported. However, token creation and graduation rates remain below 2025 peaks, suggesting concentrated rather than widespread interest in new tokens according to data. Despite the high volume, only 192 tokens graduated from over 27,000 launches in the last 24 hours, placing the daily graduation rate below 1% as observed.

The platform has also faced legal scrutiny following a class-action lawsuit alleging market manipulation and unfair trading practices as detailed. The lawsuit accuses Solana, Jito Labs, and Pump.fun of colluding in a $4–$5.5 billion exploitation scheme according to legal analysis. This legal challenge has raised questions about the future of the Solana meme coin ecosystem and the broader implications for tokenized assets on the chain as noted.

What Are the Risks and Limitations of the New Model?

Critics argue that the fee-sharing model still fails to address fundamental issues such as the exploitation of retail traders and the industrialized deployment of tokens according to analysis. Some users have suggested alternative solutions, including setting creator fees to 0% until a token reaches $1 million market cap or implementing a fee structure that redistributes value more fairly as proposed.

The overhaul comes amid growing competition from rival platforms like LetsBonk, which briefly overtook Pump.fun in volume and revenue according to reports. Pump.fun has attempted to regain its dominance with aggressive buyback strategies and the Project Ascend creator program as detailed. However, the effectiveness of these measures in driving long-term value remains to be seen according to market observers.

Pump.fun's native token, PUMP, has seen renewed short-term momentum, trading at around $0.0024, up roughly 10% over 24 hours according to trading data. Despite this, PUMP remains more than 70% below its all-time high, indicating significant volatility and uncertainty in the token's value as reported.

What Is the Outlook for Pump.fun in 2026?

The platform's leadership remains optimistic about the future of Pump.fun and the broader Solana memecoin ecosystem according to statements. Co-founder Alon expressed excitement for the year ahead, noting that the new fee model will help create a more balanced and sustainable environment for creators and traders as stated.

However, the success of the overhaul will depend on whether the platform can maintain trading activity and improve graduation rates according to analysis. Legal risks also remain, as the class-action lawsuit could lead to stricter regulations or even the shutdown of platforms deemed to facilitate unfair trading as noted.

In the short term, the focus will be on whether the new model can drive meaningful revenue and reduce speculative volatility according to market expectations. If successful, Pump.fun could position itself as a key player in the Solana memecoin space while addressing the structural misalignments that have plagued its previous models as projected.