Solana News Today: Pump.fun Rewires Incentives to Kill Short-Term Schemes

Pump.fun, a leading platform for token creation on the Solana blockchain, has introduced a dynamic fee model as part of its "Project Ascend" initiative, aiming to enhance token sustainability and creator incentives. The new model, Dynamic Fees V1, operates on a tiered structure, where higher market capitalization tokens face lower creator fees. This strategy is designed to disincentivize speculative and short-term token creation, such as rugpulls and pump-and-dump schemes, while promoting long-term project viability [1].

Since its launch, Pump.fun has generated over $820 million in lifetime revenues, with weekly average trading volumes reaching $1 billion. The platform has also seen a resurgence in token creation activity, with daily new tokens averaging over 20,000 in August 2025, up from a low of below 10,000 in July [1]. The native PUMP token has responded positively to the news, rising 29% over the past seven days and gaining 5.45% in the last 24 hours. However, it remains down 39% from its mid-July launch price [1].

According to Pump.fun co-founder Alon Cohen, the dynamic fee model aims to make token creation "10x more rewarding," potentially attracting more creators, including streamers and startups, to the platform [1]. The initiative is also expected to streamline operational efficiencies, such as a 10x increase in CTO Creator Fee application processing times. By aligning rewards with token growth, the platform seeks to foster a healthier ecosystem for both creators and users [2].

The platform’s growing influence is underscored by its status as the most widely used launchpad on Solana, with over 1.3 million active addresses in a single month. However, the rapid expansion has led to significant risks, with more than half of participants losing money in recent months and total losses exceeding $66 million [2]. Project Ascend is positioned as a strategic response to these challenges, shifting focus from speculative trading to sustainable project development [2].

In parallel with the fee update, Pump.fun has executed a buyback program, retiring $10.6 million in PUMP tokens this week, bringing total buybacks to nearly $59 million. This has contributed to a 14% price surge for the PUMP token, with analysts suggesting that continued adoption under the new fee model could solidify Pump.fun’s dominance in the Solana meme economy [2]. The platform now faces the challenge of maintaining its momentum while ensuring long-term stability in an increasingly competitive market.

Source: [1] Pump.fun Targets Long-Term Token Health With Creator ... (https://www.ccn.com/news/crypto/pump-fun-token-project-ascend/) [2] PUMP Price Jumps as Pump.fun Unveils Plan to Attract ... (https://www.mexc.fm/en-TR/news/pump-price-jumps-as-pump-fun-unveils-plan-to-attract-millions-more-users/83041)