Michaela
Solana-based token launchpad Pump.fun has revamped its fee structure, resulting in more than $2.1 million in earnings for platform creators within 24 hours. The platform says the new model could boost creator revenue on the site by up to ten times.
Key points:
- Pump.fun’s new fee structure, Project Ascend, has generated over $2.5 million in creator earnings within 24 hours, potentially boosting revenue up to tenfold.
- The Dynamic Fees V1 system ties creator fees to token market capitalization, giving smaller projects higher rates while larger-cap coins incur lower fees, promoting growth and longevity.
- While incentivizing token development and community engagement, the higher fees increase trading costs and link creator income closely to market volatility, highlighting both opportunities and risks in the Solana meme coin ecosystem.
Pump.fun’s revamped fee system, branded as Project Ascend, has already generated more than $2.5 million in creator fee claims, according to data from Dune Analytics.
Under Pump.fun’s updated fee model, token creators now earn a portion of the total fees on every trade. The platform’s dynamic structure adjusts the fee percentage based on the market capitalization of each token. Creators of tokens valued between 420 SOL ($88,000) and 1,470 SOL ($300,000) receive the highest rate of 0.95% per trade, with the percentage gradually decreasing to 0.05% for tokens reaching a $20 million market cap.
In a post on X announcing Project Ascend, Pump.fun explained that creator fees have long served as a tool for marketing, content creation, funding, and community growth. The platform noted, however, that managing these projects can be costly, and previous fee levels offered limited support.
To address this, Pump.fun introduced “Dynamic Fees V1,” a new tiered creator fee system exclusive to PumpSwap. The model adjusts fees based on a token’s market capitalization, higher-cap coins incur lower fees, aimed at promoting long-term growth and acceleration. Existing and new PumpSwap coins alike benefit from this structure, while protocol earnings and autocompounded liquidity provider fees remain unchanged.
By increasing incentives for token development and community engagement, the platform could see a surge in new token launches and overall trading activity. However, the higher fees also come with trade-offs, as they increase costs for traders and tie creator income more directly to market performance.
This dynamic emphasizes the delicate balance in the meme coin ecosystem, where accelerated growth and innovation coexist with heightened volatility and financial risk for both creators and participants.
As the Solana meme coin landscape continues to evolve, platforms like Pump.fun are testing new approaches to incentivize participation while navigating the challenges of a speculative market.
The next few months could serve as a critical proving ground for fee models that aim to balance creator rewards with trader confidence, potentially setting new benchmarks for the broader crypto launchpad ecosystem.
Read More
- Pump.fun Sued for $5.5B — What It Means for SHIB and Meme Coins
- Pump.fun Faces Backlash Over $741M Fees and Scam Allegations
- Pump.fun X Accounts Suspended Ahead of 1B Token Sale Launch
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
