On January 10, Pump.fun announced that it would restructure its creator fee mechanism. Co-founder Alon Cohen stated on the X platform that although the current Dynamic Fees V1 has significantly increased platform activity in the short term, it "may distort the incentive structure" in the long term and has failed to form a sustainable market behavior.
Cohen pointed out that the mechanism encourages large-scale issuance of low-risk tokens while suppressing high-risk, but crucial, trading activities. "Traders are the core source of the platform's liquidity and trading volume, and this structure is dangerous," he said.
He recalled that the mechanism was initially very effective, with a large influx of new creators driving its popularity through live streaming and other means. Pump.fun's bonding curve trading volume doubled within a few weeks, creating one of the strongest on-chain environments in early 2025. However, the hype quickly subsided, exposing structural problems.
As part of the first phase of adjustments, Pump.fun will introduce a creator fee sharing mechanism, allowing creators or Community Takeover (CTO) administrators to distribute fees proportionally across up to 10 wallets after the token is listed. It also supports transferring token ownership and revoking update permissions. Cohen emphasized that the Pump.fun team members will not collect creator fees under any circumstances; this feature is "entirely for frontline users," and fees can be claimed at any time and will not expire if not claimed.
