Pump.fun Updates Its Creator Fee System to Boost Trading and Liquidity

Pump.fun, a Solana-based memecoin launchpad, is changing how it handles creator fees after realizing the old system created the wrong incentives.

The Co-founder, Alon Cohen, said the Dynamic Fees V1 model, while good at driving activity, pushed creators to make low-risk tokens instead of encouraging real trading, which is important for keeping liquidity and volume high. He called this approach “dangerous” for the platform’s long-term health.

At first, the fee system worked well. New creators started launching tokens and livestreaming, and Pump.fun’s bonding curve volumes more than doubled in a few weeks. But the boost didn’t last, revealing flaws in the setup.

Cohen said fees often encouraged token minting rather than building liquid markets, and sometimes users had to trust others to manage coins, which hurt the experience.

The new fee system will let creators and Community Takeover (CTO) admins split fees across up to 10 wallets. Teams can also transfer coin ownership or revoke update rights. Cohen stressed that Pump.fun’s team will not take any fees, making it purely for active users. Fees can be claimed anytime and are not lost if unclaimed.

Pump.fun has become the top Solana memecoin launchpad by making token creation easy and providing a clear path to liquidity. The platform briefly lost ground to rival LetsBonk in July but regained momentum through PUMP token buybacks and a new payout system under Project Ascend. By late summer, Pump.fun handled about 75%–80% of Solana memecoin launches, keeping it as the market leader.