Pump.fun Rolls Out 50% Trading Fee Revenue Share for Memecoin Creators Amid Mixed Reactions

Pump.fun, the leading Solana-based memecoin launchpad, has unveiled a significant update to its platform, introducing a 50% revenue-sharing model for token creators. 

New Revenue Share Model

The move, announced on May 12, is part of an effort to reshape the financial incentives within the rapidly expanding memecoin market. This new framework allows creators to collect a share of trading fees generated through PumpSwap, the decentralized exchange (DEX) linked to Pump.fun. Under the revised model, token developers will now earn 0.05% of every transaction involving their tokens, paid in SOL. Given the platform’s substantial trading activity—$11.2 billion in volume reported for April 2025 alone—this could represent a meaningful revenue stream for creators.

A Shift in Creator Incentives

Until now, most memecoin creators on Pump.fun and comparable platforms earned profits primarily by selling off their holdings, a practice that contributed to rampant token dumps and frequent rug pulls. The ease of launching tokens on Pump.fun, while fueling its rapid growth, has also exposed the platform to recurring integrity issues. One notorious example involved a 13-year-old who rugged two separate projects on the site.

The introduction of a continuous revenue stream tied to trading activity, rather than immediate token sales, could encourage developers to stay engaged with their projects beyond the initial launch. With ongoing earnings potential, creators now have a financial motive to actively support their tokens, drive trading volume, and potentially stabilize price movements over time.

Revenue Distribution Mechanics

PumpSwap’s existing fee structure charges a 0.25% fee on every transaction, split between liquidity providers (0.2%) and the platform (0.05%). Under the updated model, the 0.05% retained by the protocol is now directed to a creator vault associated with each token. As a result, the total swap fee rises slightly to 0.3%, with the additional allocation benefiting token developers directly.

To qualify for revenue sharing, tokens must either be newly launched, remain within their bonding curve, or have graduated to trading on PumpSwap. Earnings are distributed in SOL and can be instantly redeemed via users’ Pump.fun profiles.

Community Pushback and Concerns

Despite its intended benefits, the revenue-sharing initiative has drawn criticism across the crypto community, particularly on X (formerly Twitter). Many argue the new model may unintentionally reward bad actors while undermining community-led project takeovers (CTOs).

Pseudonymous trader 0xRiver voiced strong opposition, stating, 

“I think this is a horrible move. 99% of coins are legit CTO coins. People don't want the dev, and now we are giving the dev money that he rugged. This is super bad.”

Critics fear that enabling continuous fee income for token creators, regardless of a project’s health or activity, might incentivize opportunistic developers to launch low-effort tokens, siphon trading fees, and exit without supporting their communities.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.