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Pump.fun Hands 50% of Trading Fees to Token Creators, But Critics Call It a Rug Pull Reward
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PumpSwap Launches Creator Revenue-Sharing Program Amid Memecoin Launchpad Competition
PumpSwap, the Solana-based decentralised exchange connected to the memecoin launchpad Pump.Fun, recently introduced a revenue-sharing programme aimed at rewarding token creators.
Under this new system, creators will receive 50% of PumpSwap’s trading revenue, offering a new way for memecoin developers to earn from the ongoing activity around their tokens.
How the New Revenue Program Works
Creators will earn 0.05% (5 basis points) of each transaction involving their token, paid in Solana (SOL), the native currency of the blockchain.
This means that for every trade involving their token, the creator will receive a small percentage of the trade volume.
For example, a token that generates $10 million in trading volume would result in $5,000 in SOL being distributed to its creator.
As a platform that mainly earns through swap fees, this move shows Pump.fun's focus on encouraging long-term creator involvement.
Revenue-Sharing: A Double-Edged Sword for Token Creators
The key feature of the program is the ongoing financial benefit for token creators throughout the life cycle of their projects.
Previously, creators could only profit from selling their tokens.
However, with the introduction of this scheme, creators can now benefit from continuous revenue as long as their token is traded on the platform.
Despite the promise of a steady income, some critics have voiced concerns about the potential negative impact on the memecoin space.
A pseudonymous trader, 0xRiver, commented,
"I think this is a horrible move. 99% of coins are legit CTO coins. People don't want the dev, and now we are giving the dev money that he rugged. This is super bad."
Source: X
Critics argue that such a model could encourage token creators to abandon their projects after the initial launch, only continuing to collect fees as long as trading persists.
The fear is that this will further fuel the culture of “rug pulls,” where developers abandon their tokens after profiting from the initial hype.
A Platform Built for Easy Token Creation and Fast Transactions
Launched in January 2024, Pump.fun was designed to simplify token creation and trading on the Solana blockchain, primarily targeting memecoin creators.
The platform allows anyone to create a token for a small fee (initially about 0.02 SOL, or roughly $3) and begin trading it immediately.
Pump.fun’s easy-to-use interface has attracted a wide range of users, leading to massive volumes of tokens being launched on the platform.
In its first year, Pump.fun grew significantly, processing $22.3 billion in 2025 alone, accounting for 2.8% of all Solana protocol volume.
The platform also handles a large portion of Solana’s total transaction count, with 62% of all transactions on the blockchain being attributed to Pump.fun in November 2024.
However, this massive success has come with its share of issues, particularly regarding the legitimacy of many of the tokens launched.
According to Solidus Labs, nearly 99% of the tokens on Pump.fun are suspected to be fraudulent or pump-and-dump schemes.
Source: Solidus Labs
Revenue Sharing May Not Solve Memecoin’s Longstanding Issues
While the revenue-sharing program offers creators a financial incentive to remain involved with their projects, it may not address the deeper issues of trust within the memecoin ecosystem.
The ease with which tokens can be launched and traded on Pump.fun has led to an influx of low-quality and often fraudulent projects, contributing to widespread distrust among investors.
For creators, the appeal of ongoing revenue could encourage them to maintain their tokens for longer periods.
However, many fear that this system might still allow unscrupulous creators to abandon their projects while continuing to collect fees, leaving investors with nothing.
A crypto entrepreneur, MrNobody, suggested,
“Implement a framework that supports the project even if the developer disappears, something like a reserve fund or a fallback governance mechanism that protects the community. Without accountability, incentivizing token creators becomes a way to monetize exit scams at scale.”
Source: X
According to web analysis, Specter,
“This will enrich creators, most of whom are farmers or ruggers. Most of the coins that perform well are usually CTO-driven, but now the creators will take the rewards instead.”
Source: X
As a result, the program’s design may discourage community-led initiatives, such as community takeovers (CTOs), where the community takes control of a project after its original creators abandon it.
Is Pump.fun’s Revenue Sharing Model the Future for Memecoin Projects?
With its innovative approach, Pump.fun has positioned itself as a key player in the competitive world of memecoin launchpads.
The platform’s creator revenue-sharing model aims to address some of the flaws of traditional token launches by incentivising developers to remain engaged with their projects over time.
As the memecoin market matures, it is still up in the air whether this initiative will drive lasting growth or just continue the cycle of token pumps and dumps.
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