Solana News: Pump.fun Introduces New Fee Sharing Model

Key Insights:

• Pump.fun overhauls creator fee system in the latest Solana news.
• This comes after concluding that the current setup undermines the platform’s long-term market health.
• Cohen said that while creator fees benefited serious projects with active teams, they had little impact on the average memecoin creator.

Recent Solana news shows memecoin launchpad Pump.fun has decided to overhaul its creator fee system after concluding that the current setup undermines the platform’s long-term market health.

The team says the existing incentives pushed creators toward short-term gains instead of sustainable growth. As a result, Pump is moving quickly to realign how it rewards builders and project teams.

Under the new model, creators can now split fees across up to ten wallets. This approach gives teams and CTO administrators more control over how they distribute revenue.

Pump.fun will also allow teams to transfer coin ownership when necessary. In addition, it will let projects revoke update authority, a step the platform says will strengthen transparency and build user trust over time.

Pump.fun Rolls Out New Fee Sharing System

Pump.fun co-founder Alon Cohen said the memecoin launchpad is revamping its creator fee system in the latest Solana news. He noted that the team had determined the current model distorted incentives.

In a Friday post on X, Cohen explained that the introduction of the Dynamic Fees V1 system in December succeeded in boosting activity across the platform. However, he noted that the same system failed to support healthy, long-term market behavior.

Cohen added that the mechanism pushed users toward low-risk token creation while discouraging higher-risk trading. He described this imbalance as dangerous. He pointed out that traders, not token creators, provide the liquidity and volume that keep the platform alive.

The co-founder stated that the early rollout initially delivered encouraging results. Within weeks, new creators flooded the platform, launching tokens and livestreaming their activity.

As a result, onchain conditions strengthened sharply, marking what he described as some of the strongest market activity seen in 2025. Data shared with his post showed bonding curve volumes on Pump.fun more than doubled during this phase.

Solana News: Pump.fun’s Previous Fee Structure Pushed Minting Instead of Trading Liquidity

Cohen said that while creator fees benefited serious projects with active teams, they did little to influence the average memecoin creator. For many users, the fee acted as a blunt tool. It encouraged token minting rather than the development of liquid markets.

He added that the platform struggled to provide a smooth user experience. Often, users had to CTO coins or rely on others to fulfill commitments, creating friction and uncertainty.

Pump.fun outlined the first phase of its changes in a series of posts on X. The platform is rolling out creator fee sharing, which lets creators and CTO administrators allocate specific percentages of fees across up to ten wallets after launch. Teams will also gain the ability to transfer coin ownership and revoke update authority.

Cohen emphasized that no one on the Pump.fun team will ever collect fees, calling the feature “for trenchers.” Recipients can claim fees at any time, and unclaimed fees are not forfeited, giving creators full control over their rewards.

Pump.fun has become the top launchpad for Solana memecoins by making token creation nearly frictionless and providing a clear path to liquidity.

The platform faced a brief setback in July when its rival, LetsBonk, surpassed it in both volume and revenue. However, Pump.fun quickly regained momentum.

The team strengthened its lead through aggressive PUMP token buybacks and a revamped creator payout program called Project Ascend. By late summer, trackers showed Pump.fun back in control, handling roughly 75% to 80% of all Solana memecoin launches.