Pumpfun introduces creator incentives, with a $7M opportunity linked to April’s volume.

Pump.fun has launched a revenue-sharing model as of May 12, allowing token creators to earn 0.05% of the trading volume in Solana (SOL) from trades executed on PumpSwap.

For a token to be eligible for this revenue, it must satisfy at least one of the following conditions: it must be newly minted, currently trading on Pump.fun’s bonding curve, or have transitioned to PumpSwap previously. There are no retroactive benefits, meaning any trading volume that took place before May 12 does not count toward the earnings.

According to DefiLlama statistics, this new system could have enabled creators to receive nearly $7.3 million in rewards last month, leveraging the overall $14.6 billion volume observed across Pump.fun and PumpSwap during April.

Rewards accumulate automatically and can be claimed via an on-chain transaction through the user’s wallet when accessing their profile on Pump.fun. The platform assures that creators may retrieve their earnings at their convenience, without any hold periods or minimum limits.

Necessary fee updates for Pump.fun

This initiative represents an evolution in the monetization strategy associated with Pump.fun’s token launch system. The official communication indicates that PumpSwap intends to direct 50% of its revenue to token creators, which effectively means 0.05% is allocated for each transaction.

Nevertheless, a comprehensive update of the fee structure on PumpSwap hasn’t been formally communicated; it presently charges 0.20% to liquidity providers (LP) and retains 0.05% for the protocol.

The suggestion that creators will receive an added 0.05% implies that the total trading fee could be adjusted to 0.30%, with 0.25% going to LPs and creators collectively, while 0.05% remains with the platform.

This initiative comes during a time of ongoing engagement in Solana-focused memecoin projects. Analysis from Blockworks shows a $6 billion surge in trading volume linked to memecoins launched by Pump.fun from March to April.

Further insights from Artemis indicate that memecoins ranked as the sixth most effective segment among 22 crypto categories last month, showing an average growth of 49.3% per token.

Moreover, memecoins originating from the Pump.fun framework have shown the seventh-highest price appreciation in the past week, according to data from CoinGecko.

Mentioned in this article