Pump.fun acknowledges flaws in its existing fee regime…launches sweeping overhaul

Pump.fun, a Solana (SOL)-based meme-coin issuance platform, is moving to revamp its fee system.

According to Cointelegraph, a cryptocurrency-focused outlet, on the 10th (Korea time) Alon Cohen, a co-founder of Pump.fun, said on X (formerly Twitter) that the Dynamic Fees V1 model introduced several months ago “succeeded in boosting short-term activity but failed to create a sustainable market structure,” adding that “creator fees need to change.”

Cohen stressed that “the previous fee structure ended up incentivizing low-risk token issuance over high-risk trading,” adding that “traders are the ones who actually underpin the platform’s liquidity and trading volume, and a structure that discourages them is risky.”

Data shared by Cohen show that early in the rollout of the dynamic-fee system, new creators rushed to launch tokens and start live streaming, creating a robust on-chain environment. But structural limitations soon became apparent. Cohen said it “helped some serious projects, but failed to change the behavior of the average meme-coin issuer,” assessing that the fees “acted as a blunt incentive that pushed simple token minting rather than liquidity formation.”

Pump.fun unveiled a first-phase overhaul to address the issue. Under the new rules, creators and Community Takeover (CTO) managers can allocate fees generated after a token launch across up to 10 wallets on a pro-rata basis, and teams will also be able to transfer coin ownership and revoke update permissions.

Cohen emphasized that “the Pump.fun team will not take fees under any circumstances,” adding that the feature is aimed at so-called “trenchers,” the platform’s core participants. Fees can be claimed at any time, and they do not expire even if not claimed for a period of time.