Solana News Today: Pump.fun's Fee Overhaul Rewards Creators 10x in 24 Hours

Pump.fun, a prominent Solana-based token launchpad, has introduced a revamped fee model as part of its Project Ascend initiative, significantly increasing earnings for creators in a 24-hour period. The new model reportedly boosted creator earnings by tenfold, distributing $2 million to creators within the first 24 hours, compared to just $198,000 under the previous structure. High-profile creators such as Rasmr saw a dramatic increase in earnings, with $2,290 in creator fees on the day of the update—up from $5.12 the day before. This surge underscores the platform’s ambition to compete with traditional livestreaming platforms like Twitch, particularly in the realm of micro-creators, where Pump.fun’s model appears to offer more substantial financial returns [1].

The updated fee model, known as Dynamic Fees V1, adjusts creator earnings based on the market cap of their tokens. Tokens with market caps between $88,000 and $300,000 now generate the highest percentage of fees for creators at 0.95% per trade, gradually decreasing to 0.05% at $20 million. This structure is intended to incentivize long-term growth rather than short-term liquidity. Notably, the system ensures that tokens with higher trading volumes, which typically accompany larger market caps, continue to yield substantial fees. Adam Tehc, a Dune dashboard creator, highlighted the significance of the change, noting that the previous model left “creator rewards pretty bad,” while the new system offers a “step in the right direction” for token creators who drive the memecoin economy [1].

Project Ascend represents a broader evolution for Pump.fun, which initially launched as a token creation platform in early 2024 and later incorporated livestreaming. However, the livestreaming feature was temporarily removed in November 2024 due to concerns over inappropriate content and moderation issues. The recent updates are part of the platform’s strategy to reposition itself as a hub for sustainable memecoin projects and to attract mainstream talent to the Solana ecosystem. The co-founder of Pump.fun, Alon Cohen, emphasized the need for more success cases in the space, stating that the initiative aims to create “coins with value that can last and giving retail genuine opportunities in making money” [3].

The market response to Project Ascend has been swift. Pump.fun regained its dominance in the Solana launchpad market, capturing 68.2% of the market share by late August after a competitive period with rival platform Bonkfun. The platform also executed a significant buyback of nearly $44.5 million in PUMP tokens during the same period, signaling a strategic commitment to strengthening its native token ecosystem. The dynamic fee model now applies to both new and existing PumpSwap tokens, allowing creators and communities to access enhanced funding opportunities without disrupting liquidity provider economics [3].

The platform has also streamlined its Community Takeover (CTO) application process, reducing approval times from days to hours. This change enables active project leaders to take over abandoned or underperforming tokens and redirect creator fees to ongoing development and marketing efforts. Such a mechanism is intended to foster long-term engagement and reduce the prevalence of “pump and dump” strategies commonly associated with the memecoin space. While the move has been praised for its potential to stabilize the ecosystem, it has also drawn criticism for potentially enabling speculative behavior [3].

The launch of Pump.fun’s new model has reinvigorated activity within the Solana memecoin community, with notable returns from high-profile creators such as Mitch, who launched his token $MITCH and saw its market cap exceed $42 million within three hours. Similarly, Rasmr, a key figure in the probablynothing community, has continued to drive attention through livestreams and creator tokens. These developments highlight the growing influence of individual creators in shaping the Solana memecoin landscape. However, the success of Pump.fun’s model will depend on its ability to maintain regulatory balance and foster genuine value creation, rather than simply fueling speculative activity [2].

Source:

[1] Pump.fun's New Fee Model Hands Out $2M to Creators in ... (https://finance.yahoo.com/news/pump-fun-fee-model-hands-125849600.html)

[2] The live broadcast coin MITCH is rising rapidly, and Pump. ... (https://m.odaily.news/en/post/5206089)

[3] Pumpfun launches initiative to become Solana's 'hub for ... (https://cryptoslate.com/pumpfun-launches-initiative-to-become-solanas-hub-for-successful-projects-boosts-creator-earnings-10x/)