Key Notes
- Pump.fun’s creator-fee model failed and that traders will decide which tokens earn fee rewards.
- Pump.fun’s initial changes include fee sharing across up to 10 wallets plus coin ownership transfer and revocation of update authority.
- Developer Unihax0r publicly criticized the update on X as insufficient and framed creator fees as renamed taxes.
Pump.fun co-founder Alon told users on Jan. 9 that the platform’s creator-fee design failed to produce durable trading incentives. Pump.fun now plans a market-led overhaul that lets traders decide which tokens qualify for fee rewards.
Why Pump.fun Revamps Incentives
Alon tied the pivot to Pump.fun’s Dynamic Fees V1 experiment. He said it pulled in first-time creators fast, then warped incentives toward low-risk issuance rather than risk-taking flow.
The mechanism’s early phase still matters for tape readers. Pump.fun explicitly linked it to a surge in “streaming” launches and a step-change in activity. However, it also blamed it on a weaker market structure, as issuance outpaced sustained secondary liquidity.
Pump.fun has already shipped a set of plumbing changes intended to reduce off-platform trust assumptions about fee splits. Creators can share fees across up to 10 wallets, transfer coin ownership, and revoke update authority.
The counter-trade showed up instantly on X. Developer Unihax0r called the update “nothing.” He argued that the platform had just renamed “taxes” to “creator fees,” and pushed for a heavier redistribution of value back to users.
How Crypto Market Reacts to Pump.fun’s Pivot
Just last week, Pump.fun saw a daily trading volume of $2.03 billion, marking a new all-time high. The platform also collected $3.87 million in fees, with a revenue of $1.53 million over the past day.
PUMP traded at $0.002403 (+9.4% in 24h) on CoinMarketCap amid the recent news, with $251.2 million in reported 24-hour volume and $851.4 million in market cap.
next
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Yana Khlebnikova joined CoinSpeaker as an editor in January 2025, after previous stints at Techopedia, crypto.news, Cointelegraph, and CoinMarketCap, where she honed her expertise in cryptocurrency journalism.
Yana Khlebnikova on LinkedIn
Source: https://www.coinspeaker.com/pump-fun-admits-creator-fees-failed-pivoting-to-trader-set-rewards/
