Solana-based memecoin launchpad Pump.fun has introduced a new feature that shifts incentives toward traders rather than token deployers, adjusting a fee model that at its peak generated more than $15 million in a single day.
In a post on X Tuesday, Pump.fun said memecoin creators can now choose whether their token should receive traditional Creator Fees or instead direct rewards to active traders through a new mechanism called “Cashback Coins.”
Under the platform’s original structure, Creator Fees granted token creators 0.3% of all fees generated by the coins they launched.
However, Pump.fun acknowledged that not every token warrants Creator Fees, noting that many memecoins gain traction organically without a formal team or project lead — meaning deployers could be disproportionately rewarded despite limited ongoing involvement.
“Now, traders can choose to engage with tokens they feel the most aligned with, ultimately letting the market decide who gets rewarded and where the bar is set.”
Pump.fun said token creators must select either the Creator Fees model or the Trader Cashback option before launching a coin, and the choice cannot be changed afterward.
Terminal, the trading interface integrated into Pump.fun, explained that Cashback Coins are minted with every trade and can only be accessed through its platform.
The rollout comes as analysts at Santiment said Friday that memecoins may be nearing a market bottom. The firm described the widespread narrative around the “end of the meme era” as a classic capitulation signal, noting that when a sector is broadly dismissed, it can often signal a contrarian opportunity.
Meanwhile, Pump.fun’s fee revenue has declined significantly over the past year. The platform generated $31.8 million in fees in January, down 75.6% from the $148.1 million recorded in January 2025 — its strongest month on record.
So far in February, Pump.fun has brought in $15.6 million, putting it on pace to fall short of January’s total.
The overhaul to Pump.fun’s rewards structure comes after months of criticism that profits were concentrated among a small cohort of traders, while most retail participants incurred losses.
According to data from Dune Analytics, of the 58.7 million wallets that have interacted with Pump.fun, only 4.76 million generated profits between $1,000 and $10,000. Around 969,780 wallets recorded gains between $10,000 and $100,000, and fewer than 13,700 wallets achieved millionaire status on the platform.
The new feature was welcomed by many members of the Pump.fun community. However, some users — including X commentator Coos — questioned whether shifting incentives toward traders might dampen developers’ motivation to launch new tokens.
“So devs have less reasons to push coins longer, as the most lucrative time is when coins are still on pf, and have just graduated where there is the most volume.”
While Pump.fun has opted to revamp its incentive structure, other platforms have scrapped similar programs altogether.
On Feb. 10, Base — the Ethereum layer-2 network developed by Coinbase — shut down its Creator Rewards initiative as part of a broader pivot toward focusing exclusively on tradable assets.
Launched in July, the Creator Rewards program aimed to make Base a more socially driven ecosystem, where onchain engagement could translate into earnings for content creators.
According to the Base App’s X account, roughly $450,000 was distributed to 17,000 creators over seven months, with figures indicating that participants earned an average of about $26 each.
