Pump.fun, the dominant memecoin launchpad on Solana, has rolled out a game-changing revenue-sharing model

Pump.fun, the dominant memecoin launchpad on Solana, has rolled out a game-changing revenue-sharing model aimed at helping token creators within the Solana memecoin ecosystem.

Pump.fun, the leading memecoin launchpad on Solana, has introduced a game-changing revenue-sharing model to support token creators within the Solana memecoin ecosystem. The platform will now be sharing 50% of its protocol fees with project founders.

This significant shift also coincides with the launch of PumpSwap, a native decentralized exchange (DEX) designed by Pump.fun to consolidate liquidity and trading within its own ecosystem.

As CoinMarketCap data contextualizes the potential, the update introduces a 0.05% revenue cut in SOL for token creators on every transaction.

With Pump.fun processing over $11.2 billion in trading volume in April alone, this model could have generated over $5.6 million in creator rewards under the new system for that month.

However, the update marks a transition, moving away from creators primarily profit-taking through token dumping, towards a more sustainable income stream based on ongoing trading activity of their meme coins.

New Model Aims for Meme Token Sustainability and Better Creator Behavior

Traditionally, creators on memecoin platforms often profited by selling large portions of their tokens shortly after launch. This rapidly decreased token value and often sparked community mistrust, leading to the perception of many projects as potential rug pulls.

Now, with Pump.fun offering automatic earnings from transaction volume, developers have a clear long-term incentive to grow and support their communities.

Besides encouraging better creator behavior, the model may inspire more serious and innovative meme projects. By earning passive income through transaction fees, developers may feel less pressure to exit early. Moreover, creators can now monetize engagement instead of market manipulation, potentially leading to stronger token longevity.

To qualify for the Pump.fun revenue-sharing model, tokens must either remain on the bonding curve or migrate to the new PumpSwap DEX. The earning period for creator rewards began on May 12, 2025. Token creators can redeem their earned SOL directly on-chain from their Pump.fun profiles.

Critics Raise Concerns Over New Model Despite Creator Benefits

While the revenue-sharing initiative from Pump.fun offers clear promise for token creators, it has also faced some criticism. Some users argue that offering income without requiring ongoing project development may still enable low-effort scams. Additionally, skeptics worry it could limit community-led takeovers if creators remain financially tied to inactive projects.

Nonetheless, this update may help Pump.fun address long-standing complaints. The platform previously drew backlash for collecting massive fees without offering rewards or airdrops to users. Now, by distributing a share of its profits, Pump.fun is taking a step toward regaining trust and improving user perception.

Pump.fun’s Competitive Push for Solana Ecosystem Independence

Pump.fun continues to hold a dominant position in Solana’s memecoin ecosystem, having accounted for over 60% of the network’s transactions in late 2024. Its launch of PumpSwap and move away from external DEXs like Raydium is part of a broader competitive push.

This move clearly aligns with Pump.fun’s ongoing efforts to build a self-contained ecosystem, which began with its own launchpad and venture capital wing. Now, with PumpSwap and new creator incentives, the platform is aiming to further solidify its market position.