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- Pump.fun is redesigning creator fees to prioritize trading activity and liquidity.
- PUMP surged nearly 11% as markets welcomed the strategic shift.
- Traders will help decide which projects earn creator rewards going forward.
Pump.fun has reignited market interest after signaling major changes to its creator fee system, a move that immediately lifted sentiment around its native token, PUMP. The announcement triggered an intraday rally of nearly 11%, with traders interpreting the shift as a pivot toward a more balanced and market-driven ecosystem.
The platform, known for its Solana-based bonding curve token launches, acknowledged that its current incentive structure no longer aligns with long-term trading health. While creator participation surged under the existing model, Pump.fun now appears focused on fixing unintended consequences that weakened liquidity and price discovery.
Why Pump.fun Is Rethinking Creator Incentives
A few months ago, Pump.fun introduced Dynamic Fees V1 to reward serious token creators with a share of platform fees. The system initially delivered strong results. On-chain volumes increased, creator activity surged, and user growth hit record levels in 2025. Institutional attention also followed, with a Nasdaq-listed firm adding PUMP to its Solana-focused treasury strategy.
However, co-founder Alon later admitted that the model had structural flaws. Creator fees encouraged low-risk token issuance rather than active trading. As fewer traders engaged with these tokens, liquidity thinned and markets struggled to form meaningful price signals.
Shift Toward a Trader-Driven Model
Pump.fun now plans to reorient incentives toward traders, aiming to strengthen liquidity and restore confidence in price discovery. Under the upcoming system, traders—not the platform—will determine which projects deserve creator fees. This approach introduces market accountability and reduces reliance on static rewards.
The team also clarified that no Pump.fun members will receive creator fees. Instead, creators and CTO administrators will be able to distribute fee allocations through the app itself, reinforcing the idea that fees are a community-level feature rather than a platform revenue stream.
Although specific rollout timelines were not disclosed, the team described the changes as significant. The lack of a rigid schedule did little to dampen enthusiasm, suggesting traders are more focused on direction than deadlines.
PUMP Price Reacts as Confidence Builds
Markets responded quickly to the announcement. PUMP climbed to around $0.0024, reflecting renewed confidence in Pump.fun’s long-term strategy. The move builds on earlier trust-building steps, including a previously announced PUMP buyback.
Also Read: Pump.fun Denies $436M Cash-Out, Explains Treasury Management
For traders, the message was clear: Pump.fun is prioritizing liquidity, participation, and market-driven outcomes over passive issuance. Whether the overhaul delivers sustained growth will depend on execution, but for now, momentum is back on PUMP’s side.
Pump.fun’s decision to rethink creator fees marks a meaningful shift in how token launch platforms balance creators and traders. By letting market activity determine rewards, the project is betting that healthier trading dynamics will drive long-term value. The sharp rally in PUMP suggests many investors agree—at least for now.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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