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Pump.fun has overhauled its creator fee structure after acknowledging that its previous model inadvertently incentivized a flood of low-quality token launches over sustained trading activity.
The Solana-based meme coin launchpad, which has processed nearly 30,000 token deployments in a single day, will now allow creators to split transaction fees across up to 10 wallets while introducing new governance controls designed to reward long-term community engagement over quick launches.
The platform seeks to rebalance incentives between token creators and traders, who provide essential liquidity and market activity.
Cohen said through X that the creator fees need change, and also acknowledged that while the previous model had driven strong on-chain activity, it ultimately encouraged superficial token launches over sustained trading engagement.
Under the revised structure, token teams and CTO (Community Takeover) administrators can now allocate transaction fees across up to 10 wallets, transfer coin ownership post-launch, and revoke update authority.
These tools are designed to support more robust governance and collaboration among contributors.
The original Dynamic Fees V1 model had been marketed as a method to tie creator rewards to token market capitalizations, rewarding smaller projects with higher fees and tapering rewards as they scaled.
Early results included doubling bonding curve volumes and fueling what Pump.fun characterized as some of the strongest on-chain conditions of 2025.
However, Cohen and the Pump.fun team now acknowledge that the model had unintended consequences for broader ecosystem health.
Rather than looking into a deeper liquidity and risk-taking by traders, creator fees in many instances became incentives to launch tokens quickly with a low-risk activity that does little to sustain trading markets.
“The mechanism encouraged low-risk token creation at the expense of high-risk trading,” Cohen wrote.
The centerpiece of Pump.fun’s revamp — creator fee sharing — allows creators to assign specific percentages of trading fees to multiple wallets after a token’s launch.
This is intended to support collective ownership and reward contributors beyond a single creator address, smoothing out complications linked to off-platform transfers or community takeovers.
In addition to fee distribution, transfer of coin ownership and revocation of update authorities are now possible directly through Pump.fun’s interface.
These changes are expected to give teams greater flexibility and clarity over token governance, a step the project says is crucial in a rapidly evolving meme coin landscape.
A notable commitment from the Pump.fun leadership is that no team member will accept creator fee payments, a move aimed at minimizing perceptions of internal profit taking and reframing the platform as a tool for broader community use rather than revenue extraction.
Data from recent platform activity shows that token launches on Pump.fun recently hit their highest daily count since mid-September, with nearly 30,000 coins deployed in a single day.
While this surge highlights ongoing interest, critics argue that sheer volume does not equate to quality or sustainability.
Analysts and community observers have voiced mixed reactions. Proponents of the new model see the fee-sharing mechanism as a constructive attempt to reward ecosystem participants and mitigate low-risk launch spam.
Detractors, including some traders and independent observers, maintain that deep structural issues — such as high instances of ephemeral tokens and speculative behavior — may blunt the impact of any fee reform.
Market analysts insists that there’s still work to be done to ensure long-term token health beyond superficial economic incentives.
It was also noted that fee structure changes must be matched by broader governance and market-quality improvements.
Particularly, for those active in Solana’s meme coin niches, Pump.fun’s overhaul is a signal that major ecosystem players are responding to incentive mismatches that can distort market behavior.
Aligning creator and trader incentives is a key objective if the platform hopes to sustain long-term trading activity and broader adoption.
Benefits of the new system could include greater transparency in fee distribution, more collaborative governance structures, and improved accountability for token teams.
However, investors should monitor how these changes play out in practice, especially as tens of thousands of tokens continue to be minted and traded.
