Pump.fun adjusts fee model - Strategic reform for $PUMP and the future on Solana

Deep Awareness: When Fees for Creators Become a “Double-Edged Sword”

Pump.fun has just acknowledged a core issue in its current strategy. Dynamic Fees V1 – implemented a few months ago – has created an imbalance in the ecosystem: token creators have too much advantage, while traders face increasing pressure. Alon Cohen, co-founder of the platform, publicly stated on X that this has gone too far, making low-risk coin creation a trend rather than encouraging genuine trading activity.

He called this “dangerous” because it is the new traders – especially those participating in the bonding curve ( the linear process when tokens are initially issued at gradually increasing prices ) – who are the main force generating the liquidity and trading volume necessary for the platform’s growth.

From Success to “Stalemate”

Initially, Dynamic Fees V1 worked very well. The number of creators increased, live streaming became popular, and bonding curve volume more than doubled. Cohen described this phase as “one of the best on-chain conditions in 2025.”

But the nature of this model revealed its weakness: although projects with professional teams benefited, ordinary memecoin issuers did not see significant improvements. Moreover, the platform faced major user experience challenges, forcing the community to rely on decentralized takeover mechanisms – which often fail or are unstable.

A New Step: Sharing Fees with Creators

To address this issue, Pump.fun has just launched a fee-sharing feature. Now, creators and CTO administrators can allocate a portion of the fees to up to 10 other wallets after launch. Project teams are also allowed to transfer ownership of tokens and revoke update rights.

Cohen emphasized an important point: Pump.fun will not benefit from any fees in any case. This feature is designed “for those who truly contribute to development.” Fees can be withdrawn at any time without time restrictions.

Competitive Pressure and Pump.fun’s “Retaliation”

These changes come amid Pump.fun facing significant competitive pressure. A rival platform once surpassed Pump.fun in both trading volume and revenue at a certain point, forcing the memecoin giant to act.

Pump.fun responded by launching a token buyback program for PUMP ( to increase its value ) and initiated Project Ascend – an initiative to support creators. These efforts seem to be effective. Currently, Pump.fun controls about 75-80% of all memecoin launches on Solana, with 24-hour trading volume reaching $7.56M and circulating market cap of $1.74B.

A Larger Signal for the Future of $PUMP

Cohen hinted that these fee changes are just the beginning. He strongly indicated that major, exciting updates are coming soon for the platform – and implicitly for the token $PUMP – though he kept details under wraps.

At the end of his speech, Cohen wrote: “I am extremely excited about what 2026 will bring.” This statement raises expectations for a major turning point for both the platform and the memecoin ecosystem on Solana.