May 12th, PumpFun,Popularity Solana– Base Memecoin Launchpad has launched a revenue sharing model for creators, which relocates 50% of their trading fees from decentralized exchanges. Pumpswaptoken the creator. This movement aims to shift the dynamics of the MemeCoin ecosystem. However, as dust settles, the mixed community responses and underlying concerns raise questions about the long-term impact of the model.
How the revenue sharing model works
The structure is simple. Creators earn 0.05% in SOL for all token transactions. So, a $10 million trading volume would be $5,000 for creators. This applies to newly created tokens, tokens still on the Pumpfun binding curve, and tokens migrated to Pumpswap. To claim rewards, creators can log in to their PumpFun profile using the wallet used to create coins, go to the “Coins” section and claim Sol revenue. This process is automated and on-chain, allowing creators to pull out rewards when they are convenient.
This model places PumpFun as a potentially advantageous platform for creators. Over 8.8 million tokens have been released since 2024. Dune analysisand Pumpswap, which accounts for 15% of Pumpswun $2 million Daily income, the financial incentives of creators are clear. However, community responses reveal a more complicated picture.
Community Response: A Divided Viewpoint
While some creators welcome opportunities for sustainable income, others in the Solana ecosystem are skeptical. Important concerns focus on the possibility of abuse. Critics argue that the model may reward developers who fire tokens only to abandon them. One pseudonym trader, 0xriver, expressed this sentiment to X, saying that the rewarding creators of Community Takeover (CTO) Coin, which accounts for 99% of memokine, could encourage bad actors to collect low-ector tokens, fees and withdraw without supporting the project.
Traders also feel that they are overlooked. This model does not offer plans to share revenues with traders who are bear the brunt of market risk. Some community members have proposed alternatives, such as allowing the community to vote that “creators” should be for revenue sharing purposes, especially in the case of abandoned tokens. This idea coincides with a recent teaser from Pumpfun founder Alon Cohen on May 16, 2025. CTO function This will redirect developers’ trading fee shares to a community that will revive abandoned memokines such as successful Dogwifhat (WIF).
Analyze the meaning of the model
The revenue sharing model is intended to encourage creators to build lasting projects rather than focusing on rapid profits. Historically, many Solana Memecoin developers have made profits by purchasing tokens at launches and selling them to retail demand, often leading to pump and dump schemes. By linking revenues to transaction volume, PumpFun wants to encourage creators to develop an active community and maintain interest in tokens over time.
However, the model is not without risk. The ease of creating Memecoin with PumpFun, which has exceeded 5.5 million unique tokens since January 2024, raises questions about the value of the creators of this ecosystem. Such a low barrier to entry could attract more speculative projects, potentially increasing washing trading and artificial volume inflation. Security is another concern. Complex reward systems can introduce vulnerabilities and create new attack vectors for smart contract exploits.
Additionally, the fee structure is under scrutiny. Previously, Pumpswap charged a fee of 0.25% per trade (0.20% for liquidity providers and 0.05% for platforms). Creators’ revenue share adds an additional 0.05% fee. Some argue that this is not funded by PumpFun itself, but rather effectively handed over to traders. This shift could block traders if the fees are not competitive compared to rival launchpads Letsbonk.
Looking ahead: Balance between incentives and risk
Pumpfun’s revenue sharing model is a bold step towards coordinating creators and community interests in the MemeCoin space. Future CTO functions can address some concerns by empowering communities that will benefit from abandoned projects. However, for the model to be successful in the long term, PumpFun needs to consider safeguards, such as mechanisms that punish lagpur and encourage traders to participate, in order to maintain confidence in the ecosystem.
Creators looking for profit should focus on building a genuine community and promoting their tokens responsibly. Trading volume monitoring and commission mechanics’ understanding is key to maximizing revenue. For traders, providing information about Pumpfun’s evolving fee structure and future features will help them navigate this changing landscape.
At its core, Pumpfun’s initiative reflects a broader push defi Rethink how value is distributed. Whether it will promote innovation or exacerbate existing challenges remains to be seen.
