In a groundbreaking move to empower meme coin creators and foster a more sustainable ecosystem, Pump.fun, the Solana-based meme coin launchpad, has announced a new revenue-sharing model.
As of May 12, 2025, 50% of the platform’s PumpSwap revenue will be distributed directly to token creators, who will earn a 0.05% commission in SOL for every trade involving their tokens.
This initiative, which aligns creators with their communities and incentivizes high-quality token launches, has sparked excitement in the crypto space and intensified competition among meme coin platforms.
A Game-Changer for Meme Coin Creators
Pump.fun’s creator revenue-sharing program marks a significant shift in the meme coin landscape.
Previously, creators on Pump.fun and similar platforms primarily earned profits by selling their tokens.
Now, with the introduction of a 0.05% commission per trade, creators can generate passive income based on their token’s trading volume. For example, a token with $10 million in trading volume would net its creator $5,000 in commissions, paid instantly on-chain via their Pump.fun profile.
This model applies to tokens that are newly created, still on Pump.fun’s bonding curve, or have graduated to PumpSwap, the platform’s native decentralized exchange (DEX).
By tying creator earnings to trading activity, Pump.fun aims to incentivize the development of engaging, community-driven projects rather than short-lived hype-driven tokens. The move comes as a response to growing competition, notably from rival platform Boop.fun, which recently launched with a focus on creator payouts.
PumpSwap: Driving Revenue and Innovation
Launched in March 2025, PumpSwap has quickly become a cornerstone of Pump.fun’s ecosystem, generating 15% of the platform’s daily revenue — approximately $300,000 per day.
The DEX, which operates on a constant product automated market maker model similar to Uniswap V3 and Raydium V4, charges a 0.25% fee per trade, with 0.20% allocated to liquidity providers and 0.05% to the protocol.
Half of this protocol fee now goes directly to creators, making PumpSwap not only a trading hub but also a lucrative platform for token creators.
PumpSwap’s features, such as instant token migrations, zero migration fees (down from 6 SOL), and enhanced liquidity, have already attracted significant trading volume, with $2.62 billion recorded in less than two weeks after its launch.
By retaining liquidity within its ecosystem and offering creator-focused tools, PumpSwap has positioned itself as a formidable competitor to Raydium, which previously served as the primary DEX for Pump.fun tokens.
A Response to Market Dynamics and Competition
The meme coin market has faced challenges in 2025, with its total market capitalization dropping 49% from a peak of $125 billion in December 2024 to $54 billion in early March. Pump.fun itself experienced a 95% revenue decline from its peak of $14 million daily, prompting the platform to innovate to maintain its dominance.
The revenue-sharing model is a strategic move to attract creators and traders amid fierce competition from platforms like Boop.fun, LetsBonkFun, and FourMeme, as well as Raydium’s own token launchpad, LaunchLab.
Posts on X reflect the crypto community’s enthusiasm for the update, with users describing it as a “huge” development that could spark a “memecoin summer.” One user noted that the 0.05% commission translates to $500 for every $1 million in trading volume, providing a compelling incentive for creators to launch on Pump.fun.
The announcement has also fueled speculation about a potential surge in meme coin activity, as creators now have a direct financial stake in their tokens’ long-term success.
Building a Sustainable Ecosystem
Pump.fun’s leadership, including co-founder Alon Cohen, has emphasized the platform’s commitment to creating a user-friendly and rewarding experience. “Our focus is on creating a user-friendly experience, which is paramount to our community’s growth,” Cohen stated in a recent Bankless podcast.
The revenue-sharing model, combined with transparent low fees and a token-burning mechanism, aims to deter scams, enhance trust, and encourage sustainable growth in the volatile meme coin market.
The platform’s 4Chan-inspired design and real-time responsiveness to news and trends have made it a hub for rapid, sentiment-driven trading. As one X user noted, “Pump.fun is really the FASTEST news outlet in the world right now. News hits the trenches before they even become news.”
This dynamic environment, coupled with the new revenue-sharing program, positions Pump.fun to capitalize on the attention economy and maintain its appeal to both creators and traders.
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Challenges and Opportunities Ahead
While the revenue-sharing model is a promising step, Pump.fun faces challenges in sustaining its growth. The meme coin sector remains highly speculative, with only 0.12% of Pump.fun investments yielding profits and just 294 of 13.4 million wallets achieving millionaire status.
Additionally, past controversies, such as the misuse of Pump.fun’s livestreaming feature in 2024, highlight the need for robust moderation and regulatory compliance to maintain user trust.
Despite these hurdles, Pump.fun’s innovative approach has solidified its position as a leader in the Solana ecosystem.
With over 8.8 million Tokens created — representing 61% of all tokens on Solana — and $600 million in revenue since its January 2024 launch, the platform continues to redefine meme coin creation and trading.
The revenue-sharing program could unlock millions of dollars for creators, fostering a new wave of high-quality meme coins and strengthening Pump.fun’s competitive edge.
Conclusion
Pump.fun’s decision to share 50% of PumpSwap revenue with creators, offering a 0.05% commission per trade, is a bold step toward aligning incentives and revitalizing the meme coin market.
By empowering creators with passive income and enhancing the trading experience through PumpSwap, the platform is poised to drive innovation and community engagement.
As the crypto world watches closely, Pump.fun’s latest move could herald a new era for meme coins, where creators and their communities thrive together in a fast-paced, ever-evolving ecosystem.
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Disclaimer: Cryptocurrency investments, including meme coins, are highly speculative and carry significant risks. Always conduct thorough research and exercise caution before investing.
