Solana-based token launch platform Pump.fun has announced a new revenue-sharing model, enabling token creators to earn a portion of transaction fees. This initiative aims to realign developer incentives and foster sustainable community building within the meme coin ecosystem.
Under the new system, 50% of PumpSwap revenue will be distributed directly to creators, offering them 5 basis points (0.05%) from all trading volume generated by their tokens. This feature applies to newly created tokens, those still on the platform’s bonding curve, and tokens that have already “graduated” to PumpSwap trading pools.
For every $10 million in trading volume, creators can earn $5,000 worth of SOL, delivered as instant on-chain payments. These earnings can be claimed at any time via Pump.fun’s creator dashboard.
“Our number one goal is to expand the trenches. It always has been and always will be. When the market grows, more people join, communities become larger and stronger, and everyone wins,” wrote founder Alon Cohen on X.
This update represents a significant shift in how creator incentives are handled across the meme coin landscape. Until now, most token developers—particularly in Solana’s low-barrier meme token environment—had only one viable monetization path: buying their own tokens at launch and selling based on retail demand.
This approach often led to pump-and-dump schemes, community fears of rug pulls, and the launch of millions of low-effort tokens that may have drained hundreds of millions from investors. Pump.fun’s new model seeks to counteract these issues by providing developers with a recurring revenue stream tied to trading activity.
By offering sustainable earnings, the platform hopes to encourage a wider variety of project types, including utility tokens, creative experiments, and media or livestream-based communities.
“Because coin developers could only benefit by selling their coins—and since they were the first buyers at the lowest price—there was an incentive for them to sell to others,” Cohen explained. “Doxxed developers trying new things weren’t really an option because people immediately assumed malicious intent.”
He added, “This simply wasn’t productive or sustainable.”
Since its launch in late 2023, Pump.fun has become one of the biggest success stories in the crypto application space, facilitating tens of thousands of token launches daily. Some tokens, like dogwifhat (WIF), have reached market capitalizations in the billions.
How Revenue Sharing Works on Pump.fun
The revenue-sharing mechanism is designed to be straightforward and accessible. Creators earn 0.05% of all trading volume involving their token, whether it’s on the bonding curve or has advanced to a full liquidity pool. This creates a direct link between a token’s market activity and its creator’s earnings.
Earnings are accumulated in real-time and can be withdrawn on-chain at the creator’s convenience. This instant reward system reduces the need for creators to exit their positions early, supporting longer-term project development.
Benefits for the Crypto Ecosystem
This incentive model helps address several persistent challenges in the meme coin and broader crypto token space:
- Reduced Pump-and-Dump Schemes: By offering an alternative revenue source, the model reduces the temptation for developers to execute quick cash-outs.
- Support for Serious Projects: Developers focused on utility, community, or creativity can now sustain their efforts without relying solely on token sales.
- Increased Trust: With fewer rug pulls and more transparent incentives, user confidence in new token launches may improve.
The approach could encourage more developers to launch tokens with real use cases or community value, moving beyond purely speculative assets.
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Frequently Asked Questions
What tokens are eligible for revenue sharing?
Both new and existing tokens qualify, including those on the bonding curve and those already on PumpSwap. The model is designed to be inclusive for all creators on the platform.
How often can creators claim their earnings?
Earnings accumulate in real-time and can be claimed at any time directly through the Pump.fun creator dashboard, providing full flexibility and immediate access to funds.
Does this model replace other forms of monetization?
No. Creators can still benefit from initial token purchases and other strategies, but revenue sharing offers a supplemental, recurring income stream based on trading activity.
Is there a minimum trading volume required to earn?
There is no minimum volume threshold. Creators earn based on all volume generated, making it accessible even for tokens with lower activity levels.
Can this model support utility tokens and NFTs?
While initially focused on meme coins, the structure could easily extend to utility tokens, NFTs, and other digital assets, encouraging broader experimentation and innovation.
How does this impact investors and traders?
The model aligns creator incentives with long-term token success, which can lead to more stable and valuable projects, benefiting all participants in the ecosystem.
Pump.fun’s new revenue-sharing model marks a notable evolution in the crypto token landscape, prioritizing sustainability and trust. By enabling creators to earn fairly from ongoing trading activity, the platform supports healthier project growth and richer community engagement. This could set a new standard for how token launch platforms incentivize and reward creators in the future.