PumpSwap Launches Revenue-Sharing Model, Distributing 50% of Trading Fees to Creators

PumpSwap, the decentralized exchange developed by Solana-based meme coin launchpad Pump.Fun, launched a revenue-sharing model on May 12, 2025, distributing 50% of its

PumpSwap, the decentralized exchange developed by Solana-based meme coin launchpad Pump.Fun, launched a revenue-sharing model on May 12, 2025.

As part of its standard 0.25% trading fee, 50% of PumpSwap’s protocol revenue will go to token creators, who are credited with 0.05% (5 basis points) in Solana (SOL) for every transaction in an eligible token.

Of PumpSwap’s total trading fees, 0.2% goes to liquidity providers and 0.05% is protocol revenue, though some reports suggest an additional creator vault fee brings the total to 0.3%.

With an estimated $11.2 billion in trading volume in April 2025, creators could be set to share about $5.6 million.

The move is designed to incentivize long-term project development on the protocol, but some have criticized the revenue-sharing model on X for potentially rewarding developers of abandoned or “rug-pulled” tokens.

“They are distributing 0.05% of each trade in $SOL to the token creators. E.g., $SHIB trades a lot, its creator will get paid a lot, even if the project is abandoned,” 0xRiver explained.

“This will discourage community-driven tokens where the devs step back after launch and the community owns it.”

The revenue-sharing model will see token creators receive 0.05% of every transaction on PumpSwap in Solana (SOL).

PumpSwap is known for its role in launching new meme coins on the Solana blockchain through its launchpad, Pump.Fun. The launchpad has aided in the creation of several viral tokens, which are actively traded on PumpSwap.

PumpSwap is a decentralized exchange built on the Solana blockchain and is aiming to integrate a revenue-sharing model with token creators.

The model, which will distribute 0.05% of every transaction to creators, aims to encourage developers to build and maintain sustainable projects on PumpSwap.

It is also designed to align the interests of creators with the platform’s success, potentially fostering higher-quality tokens and reducing speculative “pump-and-dump” schemes.

With PumpSwap’s April 2025 trading volume at $11.2 billion, the 50% revenue split could yield significant payouts—around $5.6 million shared among creators monthly.

This could attract more developers to the platform, ultimately increasing token diversity and trading activity, although the actual distribution will depend on the volume of individual tokens.

The move strengthens PumpSwap’s position in the competitive decentralized exchange market, which includes rivals like Raydium or Uniswap.

By rewarding creators, the goal is to drive liquidity and user adoption, as projects will be motivated to actively promote their tokens.

However, critics have pointed out the potential for abuse, as creators of low-effort, abandoned, or “rug-pulled” tokens will still earn revenue if their tokens maintain trading volume.

This could ultimately dilute the quality of projects and reward bad actors, impacting trust in the platform.

Many, especially developers and traders, see the revenue share as a game-changer.

Posts praise PumpSwap for empowering creators with a passive income stream, potentially stabilizing meme coin ecosystems.

Some argue it could reduce reliance on initial coin offerings (ICOs) or pre-sales, democratizing funding.

CryptoBanter called it “a bold move to keep creators in the game,” suggesting it may spark a wave of innovative projects.

But those like 0xRiver on X warn the model inadvertently rewards devs of failed or scammy tokens, as revenue is tied to trading volume, not project quality.

They fear it disincentivizes community-driven tokens where devs relinquish control post-launch.

Some posts criticize the model for favoring creators over decentralized governance, potentially concentrating influence among a few high-volume projects.

DefiDegenerate noted, “This feels like a step back from true DeFi principles.”

There’s also confusion over PumpSwap’s fees (0.25% stated vs. some reports of 0.3% with an additional creator vault fee).

This fuels distrust, with users questioning transparency and whether the extra fee burdens traders.

The revenue share creates tension between incentivizing creators and preserving decentralized, community-led projects.

Critics argue it prioritizes developers over token holders or liquidity providers.

While some see it as a way to curb meme coin volatility, others believe it may foster speculative trading without addressing underlying project fundamentals.

PumpSwap’s revenue-sharing model could fundamentally alter the meme coin and decentralized finance landscape by attracting creators and boosting platform activity.

But it risks rewarding low-quality projects and alienating those who value decentralization.

This divide highlights broader tensions in decentralized finance between incentivizing innovation and maintaining equitable, transparent ecosystems.

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