Pump.fun Launches Creator Revenue Sharing Mechanism, Sparking Market Debate
Pump.fun announced yesterday the launch of a creator revenue sharing mechanism, which will share transaction fees with token creators, igniting heated discussions in the market. While the initiative aims to rectify incentive mechanisms and promote platform sustainability, the community expresses significant concerns regarding the potential exacerbation of liquidity loss and the encouragement of fraudulent risks. Whether this update represents a breakthrough or a crisis remains to be seen by the market.
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Pump.fun Incentive Mechanism Finally Launched: Creators Earn Transaction Fee Share
Pump.fun’s newly launched “Creator Revenue Sharing Program” allows token creators to earn 0.05% of SOL from every transaction on their own DEXPumpSwap.
CREATOR REVENUE SHARING is finally here!!!
50% of PumpSwap Revenue is now shared with Coin Creators
create a coin and start earning every time someone places a trade NOW
continue reading to learn morepic.twitter.com/XmdpFdIUhV
— pump.fun (@pumpdotfun) May 12, 2025
For instance, if a certain token achieves a trading volume of $10 million, the creator would earn $5,000. The coverage includes:
- Newly created tokens
- Tokens still traded on the platform’s curve mechanism
- Tokens that have “graduated” (successfully launched) to PumpSwap
Users can log in to their original wallets through the official website and claim their earnings by selecting the “coins” page.
Community Strongly Reacts: Fear of Accelerating Liquidity Collapse and Encouraging Rug Pulls
However, this mechanism has sparked a significant amount of negative feedback, with community members worried that this move would allow bad creators to profit, further intensifying PvP risks:
“99% of token creators are just serial scammers.”
“Sharing profits with rug pullers? This is terrible.”
“This is essentially a mechanism that promotes rug pulls.”
It is evident that the community’s trust in the concept of profit sharing for token creators is extremely fragile, and this opposing sentiment seems to be deeply rooted in the crypto space.
Founder Alon Explains Initial Intent: Mending the Rift Between Creators and Community
Founder Alon quickly emphasized in his personal tweet that this program aims to address two major structural issues:
- Misalignment of interests between token creators and holders: As early holders, creators tend to sell at high points for profit, leading to conflicts with holders’ interests.
- Stigmatization of token creation: Honest creators choose to remain anonymous for fear of being labeled as “ruggers,” inadvertently enabling malicious creators to thrive.
In principle, through the profit-sharing mechanism, creators will have greater incentives to maintain the long-term development of projects, reducing short-term arbitrage behavior.
The Importance of Returning Value to the Community: Profit Sharing is a Must, Not an Option
In a decentralized world, both platforms and users are ecological builders, working together. When there is a lack of positive sentiment and value circulation between the two, it ultimately leads to a loss of trust and ecological collapse.
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As crypto KOL @waleswoosh previously stated: “If future mainstream platforms cannot share value with the community, they will inevitably be replaced by more open new platforms.” If Pump.fun does not establish a sound incentive system, it risks following in the footsteps of Opensea, which became a target after the bull market.
Crypto KOL Crypto Vaituo has also pointed out: “Projects that attempt to replicate Web2 business minds or models in Web3 almost always fail.” This highlights the importance of liquidity, which is the users and the community in a decentralized world.
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Currently, Pump.fun’s changes are undoubtedly a well-intentioned initiative aimed at reshaping market behavior through institutional design. However, in the face of community skepticism, lack of trust, and market uncertainty, whether this plan can realize its vision remains to be observed. The Pump.fun team has also promised to continue adjusting based on market feedback, attempting to find a balance between innovation and risk.
Risk Warning
Investing in cryptocurrencies carries high risks, and their prices can be highly volatile; you may lose all your principal. Please assess risks carefully.