Pump.fun, a prominent player in the Solana memecoin space, has announced significant changes to its creator fee model. This overhaul comes after the platform recognized that its previous system, known as Dynamic Fees V1, negatively impacted traders while facilitating token launches. Co-founder Alon Cohen revealed plans for a new fee structure aimed at enhancing liquidity and trading activity, hinting at a more promising future for the $PUMP token.
The decision to modify the creator fee model follows a period of volatility characterized by both rapid growth and subsequent challenges. Cohen’s comments on social media highlighted the shortcomings of the existing setup, which he described as encouraging low-risk coin creation rather than fostering meaningful trading engagement. He underscored the importance of traders in the ecosystem, stating, “Creator fees need change,” emphasizing that their contributions are essential for maintaining liquidity and volume on the platform.
Initial Success and Emerging Challenges
Initially, Dynamic Fees V1 appeared to be a success, leading to a surge in new token launches and active livestreaming on the platform. During this phase, bonding curve volumes reportedly more than doubled, with Cohen referring to the period as experiencing “some of the best on-chain conditions of 2025.” However, as time progressed, the model began to reveal its limitations. While certain project tokens benefited from dedicated teams, many average memecoin creators found little improvement in their trading activity.
The user experience also became a point of contention. Users faced challenges with the platform’s interface, often resorting to community-led initiatives that were rarely successful. This lack of effective support began to undermine the overall user experience, leading to calls for reform.
New Fee Structure and Future Plans
The first phase of the new creator fee structure is now being implemented. Under the revised system, creators and administrators can allocate fee percentages to as many as ten different wallets following a token launch. Additionally, teams will have the flexibility to transfer coin ownership and revoke update authority as needed. Cohen stressed that no member of the Pump.fun team would accept fees, characterizing the new feature as designed “for trenchers.” Fees can be claimed at any time and will not expire, providing greater flexibility for creators.
These updates come in response to heightened competition in the memecoin arena. Following a challenging few months, rival platform LetsBonk overtook Pump.fun in July regarding both trading volume and revenue. In a bid to reclaim its leading position, Pump.fun has initiated PUMP token buybacks and rolled out the Project Ascend creator program, solidifying its dominance in the Solana memecoin launches, which now account for approximately 75-80% of the market.
As the platform navigates these changes, Cohen remains optimistic about the future. He hinted at exciting developments on the horizon but did not disclose specific details. Closing his remarks, he expressed enthusiasm for what 2026 might bring, indicating that significant transformations may be in store for Pump.fun and the $PUMP community.
