Pump.fun Revamps Creator Fees to Boost Trading Activity

• Dynamic Fees V1 favored coin creation over trading, prompting Pump.fun to redesign creator fees for better market engagement.

• Creators can now share fees with up to 10 wallets, transfer ownership, and revoke update authority anytime.

• Pump.fun emphasizes transparency: team won’t take fees, leaving traders and creators to drive project success.

Pump.fun, the Solana-based memecoin launchpad, is overhauling its creator-fee system after realizing its Dynamic Fees V1 incentivized coin creation over trading. The platform aims to prioritize high-risk trading activities that fuel liquidity and market engagement.

According to Pump.fun, last year’s model encouraged many users, often new to crypto, to launch coins rather than participate in trading, which threatens long-term sustainability. Hence, the team is introducing a more flexible and transparent system for allocating creator fees.

Besides enhancing the platform’s fairness, the update allows creators to share fees with up to ten wallets and transfer coin ownership efficiently. Pump.fun co-founder Alon explained, “Creator fees needed change. Teams lacked simple fee sharing distribution—directing fees towards a specific person or address was too difficult.”

The system also enables revoking update authority, giving token teams full control over fee allocation. Consequently, creators can claim fees anytime, ensuring they remain in the rightful recipient’s account until claimed.

Dynamic Fees V1 Revealed Critical Issues

The previous Dynamic Fees V1 launched with the goal of encouraging successful token projects. Alon noted, “Only a week later, the potential of the mechanism showed: more and more creators—many of which have never touched a crypto app before—began organically launching coins and streaming on the platform.”

This surge doubled platform activity in 2025, as shown in Pump.fun bonding curve volumes. However, the system skewed incentives toward low-risk coin creation rather than high-risk trading, which is vital for the platform’s health.

Moreover, while creator fees work well for Project Tokens with active teams, many memecoins did not benefit from them. The platform’s previous model sometimes required users to trust others to allocate fees properly, weakening transparency. “Many narratives could use Creator Fees to raise the ceiling for that project,” Alon added, citing examples like White Whale or rainbowfish, which could enhance community engagement.

What’s Next for Pump.fun

Additionally, CTO admins now gain the ability to modify fee distributions, manage members, and transfer ownership even after revoking update authority. The platform emphasizes that its own team will not accept any fees, leaving the feature exclusively for active creators.

Pump.fun promises more updates soon, stating, “Pump.fun will take a market-based approach, and let traders decide whether a narrative truly deserves Creator Fees.” The platform’s focus for 2026 is clear: incentivize trading, boost liquidity, and create an optimal environment for thriving coins.