Pump.fun’s New Rewards Flip the Script for Coin Creators

Omada Apeh
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8 Min Read

Pump.fun, the viral Solana-based token creation platform, has launched a creator rewards initiative designed to realign developer incentives and curb short-term pump-and-dump cycles. As of May 12, coin creators can now earn 0.05% of the total trading volume in SOL for every transaction on PumpSwap, the platform’s decentralized exchange layer.

The new creator rewards model grants developers a steady stream of on-chain income based on actual trading activity. This change is part of Pump.fun’s broader mission to make the Solana meme coin space more sustainable, inclusive, and innovation-friendly.

From Launch Dumps to Long-Term Gains

Prior to this launch, most token creators on Solana profited only by buying their coins at launch prices and dumping them on later retail traders. This model encouraged early exits and eroded trust across countless communities. With the new creator rewards program, Pump.fun aims to flip that paradigm.

Now, developers will be able to participate in their token’s success well beyond the initial hype. The model rewards long-term engagement and supports a more thoughtful approach to meme coin project building. Whether the token is still on the bonding curve or has moved to the PumpSwap trading pool, all coins are eligible for creator rewards.

In a tweet posted Monday, Pump.fun announced:

“50% of PumpSwap Revenue is now shared with Coin Creators Create a coin and start earning every time someone places a trade.”

At a glance, for every $10 million in trading volume, developers will earn $5,000 worth of SOL, instantly available for withdrawal via Pump.fun’s dedicated creator dashboard.

Pump.fun

A More Credible Path for Token Creators

Alon Cohen, founder of Pump.fun, described the creator rewards system as central to the platform’s mission.

“Our #1 goal is to grow the trenches,” Cohen wrote on X. “When the market grows, more people join, communities get bigger and stronger, and everyone wins.”

He criticized the current state of meme coin development where anonymous developers are incentivized to rug-pull.

“Because coin devs can only benefit from their coin by selling AND because they’re the first buyers at the lowest price, the incentives are there for them to sell on everyone else,” he noted.

Cohen explained how creator rewards can restore credibility, especially for doxxed developers or experimental builders who want to create long-term communities without fearing mistrust or instant sell pressure.

“This simply isn’t productive or sustainable,” he added.

Pump.fun’s Growing Influence on Solana

Since launching in late 2023, Pump.fun has quickly become one of Solana’s most active decentralized applications, with tens of thousands of meme tokens created daily. Its viral success stems from its ultra-low barrier to entry, gamified interface, and community-driven discovery model.

The new creator rewards system represents the next phase in that growth. It shifts value accrual from hype-based trading to recurring activity and ongoing community development. By giving builders a long-term stake in their coin’s success, Pump.fun is trying to create a new incentive architecture that mirrors trends in sustainable Web3 economics.

Creators no longer have to exit early to capture value. Instead, they can engage their holders, introduce new utilities, or build creative ecosystems, knowing that higher trading volumes lead to more creator rewards.

Diverse Applications Beyond Meme Tokens

While Pump.fun is most famous for its meme coin mania, the creator rewards model opens doors for more serious experimentation. Developers can now create tokens linked to livestreams, media content, community tools, or even access passes for decentralized applications.

Because the income is tied to trading volume, these tokens don’t need to rely on speculative price pumps to be viable. Communities can rally around real use cases or collective identity, all while creators continue earning creator rewards as long as activity persists.

Pump.fun has hinted that it will continue refining the system, collecting feedback and introducing future iterations of creator rewards tailored to different token types and engagement models.

The Bigger Picture for Solana Ecosystem

The creator rewards model is a powerful response to broader criticisms facing the Solana token ecosystem. With so many tokens suffering from rapid decay or abandonment, Pump.fun’s latest move positions it as a leader in infrastructure innovation.

It acknowledges that speculation will always exist but proposes a mechanism to tie that speculation to builder compensation and community longevity. If successful, creator rewards could inspire similar models across Solana and other chains.

Solana Platform, Pump.fun, Launches Creator Rewards to Shift Incentives

Conclusion: Pump.fun Reinvents Creator Incentives

Pump.fun’s creator rewards rollout marks a significant milestone in decentralized token economics. By turning developers into long-term stakeholders, the platform is rewriting how meme coins, and potentially all community tokens, are launched and maintained.

Instead of being forced to dump their tokens to earn a profit, creators can now monetize activity, not hype. It’s a shift that empowers honest builders and rewards community growth. Whether it’s a joke coin or the next big experimental project, the creator rewards model ensures developers can win without selling out. As meme token culture matures and community expectations evolve, Pump.fun may have just offered the blueprint for sustainable token ecosystems.

FAQs

What is Pump.fun’s creator rewards model?

It gives coin creators 0.05% of trading volume on PumpSwap.

Who qualifies for creator rewards?

All coin creators on Pump.fun, regardless of whether the token is new or already in the trading pool.

How are creator rewards paid out?

In SOL, directly to the creator’s dashboard for instant on-chain claims.

What impact will this have on meme coin scams?

It reduces the incentive to rug-pull by allowing developers to earn long-term revenue.

Can creator rewards support utility-based tokens?

The model encourages experimentation beyond speculation-driven projects.

Glossary

Creator rewards: A revenue-sharing system where token developers earn a percentage of trading volume.

PumpSwap: Pump.fun’s decentralized exchange that facilitates trading of meme tokens.

Bonding curve: A pricing mechanism that increases a token’s price as more are bought.

Rug-pull: A scam where developers suddenly sell their tokens, leaving investors with worthless assets.

SOL: The native cryptocurrency of the Solana blockchain.

Sources

Coindesk

theblock.co

Beincrypto

Ainvest

Crypto.news

Cryptoslate.com

Panewslab

Twitter

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Omada is an experienced crypto journalist delivering in-depth analysis and insights on the ever-evolving world of cryptocurrency and blockchain. Her expertise spans market trends, regulatory developments, and innovative use cases. She is dedicated to providing accurate and engaging content for crypto enthusiasts and newcomers alike.
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