Pump.fun Introduces Revenue Sharing for Coin Creators to Encourage Sustainable Engagement

The Solana token issuance platform Pump.fun is introducing a new model for sharing revenue, enabling coin creators to receive a portion of trading fees. This initiative is designed to reshape developer motivations and promote sustainable community development.

On Monday, Pump announced that half of the revenue generated from PumpSwap will now be allocated to creators, allowing them to earn 5 basis points (0.05%) from the total trading volume of their coins.
This feature applies to newly minted tokens, coins still under the platform’s bonding curve, and those that have already transitioned into the PumpSwap trading pool.

As an example, for every $10 million in trading volume, creators would receive $5,000 in SOL, providing an immediate payout that can be accessed anytime via the Pump.fun creator dashboard.

“Our primary objective is to nurture the community. That has always been our focus. When the market expands, more individuals engage, leading to larger and more robust communities, which benefits everyone,” stated founder Alon Cohen on X.

This new feature alters the dynamics of incentivizing creators within the memecoin space. Previously, most developers, particularly in the accessible Solana memecoin landscape, had limited options for financial gain: buying their own tokens at initial prices and selling them to retail investors.
This approach has often resulted in pump-and-dump schemes, concerns about community rug pulls, and the emergence of numerous low-effort tokens that have potentially drained substantial amounts from investors, significantly altering market trends from earlier years.

By providing developers with a steady income linked to trading activity, the platform aims to encourage a wider variety of projects, including utility tokens, innovative experiments, and even media or live-stream based communities.

“The only way for coin developers to profit has been through selling their coins, especially as they usually purchase them at the lowest prices. This creates an incentive for them to sell to others,” Cohen explained. “Currently, there are hardly any reputable developers willing to try new approaches because they are often viewed with suspicion.”

“This situation is neither effective nor sustainable,” he remarked.

Pump has quickly become one of the most prominent success stories in the crypto application sector since its launch in late 2023, issuing tens of thousands of tokens daily, with coins like dogwifhat (WIF) skyrocketing to billions in market capitalization.