Solana Meme Coin Launch Leader Pump.fun Announces Comprehensive Reform of Creator Fee Mechanism, Introducing New Features such as Revenue Sharing (up to 10 wallets), Token Ownership Transfer, and Revocation of Update Permissions. Co-founder admits the old mechanism “failed to generate sustainable market behavior,” and the new system will incentivize creators to build liquidity markets rather than simply mint tokens.
(Background: Pump.fun further boosts token issuance benefits! Expected to share profits with PUMP token holders)
(Additional context: Solana founder Toly: Pump.fun can upgrade to a “world-class live streaming platform”! Can creator capital markets advance further?)

Table of Contents

• Co-founder admits: “The old mechanism failed”
• Overview of the new features in Phase One
• Holds 75-80% market share of Solana meme coins
• Vision for creator capital markets

Pump.fun, the leading Solana meme coin launch platform, officially introduces a new creator fee sharing system that allows teams and CTO administrators to allocate fees to up to 10 wallets, transfer token ownership, and revoke update permissions. This marks a major shift from a “minting factory” to a sustainable creator economy.

Co-founder admits: “The old mechanism failed”

Pump.fun co-founder Alon Cohen states:

Creator fees need to change.

Cohen acknowledges that although the previously launched “Dynamic Fee V1” system successfully promoted platform activity, it “failed to generate sustainable market behavior.”

He explains that the current fee structure incentivizes low-risk token creation rather than high-risk trading activities. This approach is problematic because traders are the key players providing necessary liquidity and trading volume.

Fees became a blunt incentive, encouraging people to mint tokens rather than build liquidity markets.

Overview of the new features in Phase One

The first phase of this reform introduces the following new features:

• Revenue Sharing: Creator fees can be allocated to up to 10 wallets
• Token Ownership Transfer: Allows control of tokens to be transferred to other addresses
• Revocation of Update Permissions: Enhances token decentralization
• Permanent Fee Claiming: Unclaimed fees are not forfeited and can be withdrawn at any time

Additionally, the Pump.fun team explicitly states that under no circumstances will creator fees be accepted to avoid conflicts of interest.

Holds 75-80% market share of Solana meme coins

Data shows that Pump.fun currently controls approximately 75% to 80% of the meme coin issuance market within the Solana ecosystem. During the initial reform period, the bonding curve trading volume doubled or more, but this surge was not sustained, exposing structural issues.

This prompted the team to rethink the fee mechanism design, shifting from simply encouraging token issuance to incentivizing creators to establish healthy liquidity markets.

Vision for creator capital markets

This reform echoes earlier expectations from Solana co-founder Anatoly Yakovenko (Toly). Toly once stated that Pump.fun has the potential to become a global live streaming platform, and Alon also responded that “the creator capital market” is just beginning.

With the fee mechanism revolution, Pump.fun is transforming from a mere “meme coin factory” into a more mature creator economy platform, laying the foundation for the sustainable development of the Solana meme coin ecosystem.