Pump.fun, a Solana-based token launchpad, rolled out a new dynamic creator fee model that redistributed roughly $2 million to token creators in the first 24 hours, according to on-chain dashboards. The change is designed to reward small creators and livestreamers by shifting how much trading fees flow back to token originators.
Under the revamped system, every trade of a token pays a creator fee that scales with the token’s market cap. Tokens between about $88,000 and $300,000 market cap earn the highest rate — 0.95% per trade — with the percentage gradually falling to 0.05% once a token reaches roughly a $20 million market cap. The model favors early-stage tokens that typically have lower market caps but can still see concentrated trading.
On-chain data showed a big jump in creator payouts after the update: distributions rose from about $198,000 the previous day to roughly $2 million. Individual creators also saw sharp increases — one streamer, Rasmr, earned about $2,290 the day after the change compared with just $5.12 the day before. Larger tokens benefit too: Pump.fun reports that the TROLL token (about $165.9 million market cap) has generated over $223,000 in creator rewards.
Pump.fun added native livestreaming during a surge of memecoin activity on Solana, a feature that previously attracted controversy for dangerous stunts and poor moderation. The team briefly removed streaming in November to overhaul moderation; livestreaming has since returned without major incidents. Creators in Pump.fun’s community hubs, like the Basedd House, are using the fee model to grow small audiences into sustainable income streams.
Why it matters: the change could make token creation and streaming more lucrative than traditional platforms for smaller creators, but it also increases incentives for speculative behavior. Memecoin trading is highly volatile and can resemble pump-and-dump dynamics; creators and buyers face financial and regulatory risks, and moderation challenges can raise reputational and safety concerns.
Source: Decrypt. Read the original coverage for full details.