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Pump.fun Introduces Reward Mechanism for Meme Token Creators

Pump.fun Introduces Reward Mechanism for Meme Token Creators

The “Meme Coin Factory” Pump.fun will begin distributing half of its revenue in SOL to coin creators.

The mechanism involves allocating 0.05% of the meme token’s turnover. For instance, with a trading volume of $1 million, a creator could expect $5000.

To receive income, several conditions must be met:

Creators can request rewards at any time and with any frequency on the relevant profile page.

Trading volume before May 12 is excluded from the calculation. Retroactive rewards are not provided.

According to DeFi Llama, in April, PumpSwap’s turnover amounted to $11.3 billion, while Pump.fun’s was $3.32 billion. Extrapolating these figures for May suggests $7.3 million for meme coin creators.

PumpSwap generates revenue of 0.25% from each transaction, with 0.2% going to liquidity providers and 0.05% remaining with the platform. 

According to the updated documentation, the additional fee is transferred to the coin creator’s vault account. In other words, the total fee could increase to 0.3% per transaction.

The developers’ decision has elicited a predominantly negative reaction from the community. Critics viewed it as an incentive for those engaging in unscrupulous practices on the platform.

Earlier, CoinGecko described meme coins as the most popular narrative of the first quarter of 2025.

In early May, mentions of such tokens on social media reached their highest level in 2025 amid a shift in traders’ interest towards high-risk assets.

Previously, Blockworks Research suggested a weakening of Pump.fun’s position among Solana launchpads.

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