“When minting leads and liquidity bleeds, the market pays the price.”
Did Pump. Fun’s Rapid Growth Comes at the Cost of Liquidity and Trader Safety? The well-known Solana-based memecoin launchpad Pump. fun is changing its creator fee structure to enhance user experience.
The market balance after realising that the prior model did not properly align incentives. Pump.fun co-founder Alon Cohen verified the modifications after internal and community evaluations.
Pump.fun, one of the primary sites for generating and exchanging meme-inspired currencies on the Solana blockchain, has expanded quickly since its early 2024 launch.
On the platform, more than 6 million tokens have been generated, and tens of thousands of additional tokens are frequently launched every day.
A fee model known as Dynamic Fees V1, which took effect in late 2025, started promoting the creation of low-effort tokens, which did not necessarily draw huge amounts of liquidity or actual traders.
Pump.fun discovered that while this incentive structure encouraged more memecoin minting, it did not place enough emphasis on long-term market activity. This occasionally resulted in bad trading results and a less interesting experience for users.
To solve this, the revised approach would allow authors to share fees with up to ten wallets, providing teams more control over how earnings are allocated. After a token debuts, creators will have more power since they can transfer currency ownership and remove update permission.
The goal of these adjustments is to move the focus from merely introducing a large number of tokens to creating larger markets with actual liquidity and involvement.
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