Pump.fun, a leading platform in the Solana memecoin space, is overhauling its creator fee structure following feedback that the previous model hindered trader activity. Co-founder Alon Cohen announced the changes on social media, emphasizing the need to protect liquidity and foster real trading engagement. The adjustments come after a period of volatility, during which the platform faced challenges from competitors and user dissatisfaction.
The previous model, known as Dynamic Fees V1, allowed for rapid token launches but failed to incentivize sustained trading. In Cohen’s words, the system led to a proliferation of low-risk coin creation while neglecting the critical role of traders who provide the necessary liquidity. He described the existing approach as “dangerous” since it discouraged high-risk trading activities essential for platform growth.
Challenges and User Experience
Initially, Dynamic Fees V1 showed promise, attracting new creators who actively launched tokens and engaged audiences through live streaming. The platform experienced a significant increase in bonding curve volumes, which Cohen noted as “some of the best on-chain conditions of 2025.” However, this success was short-lived. Many users faced challenges with poor user experience (UX), resulting in community takeovers and trust-based setups that often faltered.
As part of the ongoing changes, Pump.fun is introducing a new fee allocation system. Creators and CTO administrators can now designate fee percentages to a maximum of ten wallets post-launch. Additionally, teams have the ability to transfer coin ownership and revoke update authority. Cohen stated that no one from Pump.fun would accept fees, positioning the feature as a tool for “trenchers,” or those significantly invested in the platform. Fees can be claimed at any time and do not expire, adding further flexibility for creators.
Strategic Moves to Regain Market Position
These updates come in the wake of increased competition, particularly from LetsBonk, which surpassed Pump.fun in both trading volume and revenue in July. In response, Pump.fun launched the Project Ascend creator program and initiated buybacks of the $PUMP token to regain momentum. The platform currently retains around 75-80% of all Solana memecoin launches, underscoring its dominant position despite recent challenges.
Looking ahead, Cohen hinted at more significant changes on the horizon, although specific details remain undisclosed. He concluded his announcement with optimism for the future, stating, “I’m extremely excited for what 2026 holds.” This renewed focus on improving creator incentives and enhancing the overall trading experience reflects Pump.fun’s commitment to maintaining its leadership in the evolving landscape of cryptocurrency platforms.