Pump.Fun’s PumpSwap Cuts Creators In on 50% of Fees—Because Memecoins Need More Incentives

PumpSwap—Pump.Fun’s decentralized exchange—just flipped the script by sharing half its trading fees with token creators. Move over, Wall Street—here’s your new ’creator economy’ (with 100% more degen vibes).

The play: Incentivize more memecoin launches by letting creators skim profits off secondary trading. Because nothing says ’sustainable ecosystem’ like rewarding the people who invented ’DogWifTopHat3.0’.

Cynical take: Finally, a revenue model for crypto that doesn’t rely solely on greater fools. Just mostly.

PumpSwap Charges 0.25% Trading Fee, Majority Goes to Liquidity Providers

PumpSwap generates revenue through a 0.25% fee on every trade, split between liquidity providers (0.2%) and the protocol (0.05%).

However, updated documentation now suggests that an additional 0.05% is sent to a dedicated “coin creator vault,” effectively raising the total fee to 0.3% per transaction.

While the idea of profit-sharing with developers might appear community-focused on the surface, the response from traders and users has been largely critical.

On social platform X, many voiced concerns that the new structure rewards bad actors who launch tokens only to abandon them—commonly referred to as “rug pulls.”

“This is a horrible move,” wrote pseudonymous trader 0xRiver.

“99% of coins are legit CTO [community takeover] coins. People don’t want the dev, and now we are giving the dev money that he rugged. This is super bad.”

ngl I think this is a horrible MOVE 99 % of coins are legit cto coins people dont want the dev and now we are giving the dev money that he rugged this is super bad imo but we see how it goes

Others echoed the sentiment, warning that the revenue share could disincentivize community-driven projects where active members step in to maintain or revive abandoned tokens.

They argue that rewarding inactive or malicious developers could hurt long-term credibility and community trust in the platform.

Pump.Fun was launched in January 2024 by Noah Tweedale, Alon Cohen, and Dylan Kerler with the goal of simplifying token creation on Solana.

Users can launch a token with a custom ticker and image for a small fee—originally around 0.02 SOL—instantly listing it for trading.

The platform uses a bonding curve model, where token prices rise with demand, and tokens “graduate” to external DEXs once they surpass a certain market cap.

To streamline this graduation process, PumpSwap was introduced in March, enabling instant token migrations and removing the previous 6 SOL fee.

It also provides native liquidity pools, reducing reliance on external DEXs like Raydium.

Pump.fun Relaunches Livestreams to 5% of Users

In April, Pump.fun reintroduced its live-streaming feature to a limited group of users, five months after suspending it due to a wave of harmful and controversial content.

At the time, co-founder Alon Cohen said that the feature is being made available to just 5% of users and will include “industry standard moderation systems” and clearly defined content guidelines.

The live-streaming feature was initially pulled in November 2023 after users began pushing the boundaries with disturbing content aimed at promoting their meme coins.

Reports included threats of self-harm or violence if tokens failed to hit specific price targets.

Industry voices such as Mikko Ohtamaa, co-founder of Trading Strategy, warned that without effective moderation, the platform risked being shut down if mainstream scrutiny increased.