Pump.fun, the Solana ecosystem meme currency issuance platform, announced adjustments to its creation fee and reward mechanism, attempting to balance the business dynamics between creators and traders. This move comes at a time of significant platform activity recovery, with meme currency issuance reaching a new daily high since the launch of Dynamic Fees V1 last September, reigniting market attention on the return of the meme currency craze. Pump.fun points out that while the current "creation fee" design is beneficial to well-organized, clearly defined project teams, providing them with relatively stable revenue, its actual impact on most ordinary meme currency deployers and teams is limited. After internal evaluation, the platform believes that this mechanism alters risk allocation to some extent, potentially shifting some of the risk that should be borne by market traders to the platform and the overall ecosystem, which is detrimental to the healthy development of the market in the long run. Co-founder Cohen decided to further adjust the mechanism to address the conflict between creators and traders, allowing the platform to grow steadily.
Re-examining the effectiveness of "creation fees"
Pump Fun co-founder Alon Cohen, after more than two months of silence, posted on the X platform for the first time, explaining the rationale behind the adjustments. He stated that the creation fee introduced last year with the launch of Dynamic Fees V1 did successfully attract a large number of new creators and drive rapid growth in on-chain transactions and token issuance. However, the system did not truly change the behavior patterns of typical meme coin issuers. Cohen bluntly stated that the creation fee easily leads to an incentive structure biased towards "low-risk token issuance" rather than encouraging participants to actively engage in trading. He emphasized that traders are the key to the operation and continued growth of the Pump.fun platform; if traders are consistently ignored, the platform's popularity will wane.
Ascend's original design principles for dynamic cost management
Dynamic Fees V1 was launched last September as part of the "Ascend Project," with the core objective of increasing creators' potential revenue without comprehensively raising platform fees. This model employs a tiered fee structure based on market capitalization; as the token's market value grows, the creator's fee percentage gradually decreases, thereby striking a balance between project sustainability and long-term trader participation. However, after several months of operation, Pump.fun discovered that simply incentivizing creators through fee sharing could still lead to market misbehavior. Therefore, it decided to initiate new system adjustments to address the structural problems arising from the platform's rapid growth.
Pump.fun's new user promotion system: Supports creators in sharing profits and offering flexible permissions.
Pump.fun has launched a "creation fee sharing feature," allowing project teams to distribute creation fees across up to 10 wallets, supporting operations such as token ownership transfer and revocation of contract update permissions. The new system also allows creators and CTO administrators to set specific fee percentages after the token is listed, providing greater flexibility for project governance, team revenue sharing, and permission management. The platform states that these features are primarily designed to serve more mature and well-organized project teams, while reducing the institutional friction inherent in typical meme coin issuance processes.
Memecoin issuance hits a new record high, reigniting the memecoin craze.
The timing of the system adjustments coincides with a significant rebound in activity on the Pump.fun platform. According to data from The Block, nearly 30,000 new tokens were issued on Tuesday, the highest number since mid-September last year, reflecting a renewed surge in meme speculation and a rapid return of funds and attention to Solana. Cohen revealed that future versions of Pump.fun will introduce a more market-oriented design, allowing traders, rather than token issuers, to decide whether a token should charge creators a fee. He pointed out that allowing the market to decide whether fees exist helps reduce institutional distortions, allowing token value and trading activity to more accurately reflect market consensus. Cohen added that Pump.fun plans to continuously adjust and rebalance its overall incentive structure until 2026, and will continue to introduce more updates to ensure the platform maintains long-term market health and ecosystem stability while experiencing rapid growth. Whether Pump.fun's system reforms can successfully guide the market towards a more mature development model remains to be seen, given the renewed meme craze.
This article, "Meme Coin Craze Returns! Pump.fun Activity Surges Again, Introducing a New Creation Fee Sharing Profit System," first appeared on ABMedia, a ABMedia .
