Crypto: Pump.fun Rolls Out Trader Cashbacks In Tweak To Memecoin Model

The rewards model follows months of criticism that too few Pump.fun traders were breaking even on the platform, let alone profiting.

Solana-based memecoin launchpad Pump.fun has rolled out a new feature that shifts rewards toward memecoin traders rather than its deployers — a tweak to its fee model that once generated over $15 million in a single day at its peak.

In a post to X on Tuesday, Pump.fun said the platform’s memecoin creators can now decide whether a token “truly deserves” Creator Fees, or whether it’s best to redirect rewards to traders engaging with the token through “Cashback Coins.”

Pump.fun’s original model features Creator Fees, giving token creators 0.3% of all fees generated by the tokens they launch.

However, Pump.fun said not all tokens deserve Creator Fees because many tokens achieve success without a team or project lead, thereby disproportionately rewarding token deployers.

Creator Fees need change. Not every token deserves Creator Fees.Now, users have the ability to decide whether a token truly deserves Creator Fees, or whether it makes more sense to reward the traders engaging with the token.Cashback Coins are now live. Learn more 👇 pic.twitter.com/UbYoAbQ1Ya

Pump.fun said coin creators must choose between the Creator Fees or Trader Cashback model before launching. Once chosen, the decision is irreversible.

Terminal, a crypto trading platform built into Pump.fun, said Cashback Coins are generated on every trade made and are only accessible through Terminal.

It comes as analysts from onchain analytics firm Santiment said on Friday that memecoins are showing signs of a potential bottom.

“This collective acceptance of the ‘end of the meme era’ is a classic capitulation signal,” Santiment said, explaining that when a sector of the market is completely written off, it is often the “contrarian time” to start paying attention.

Source: CoinTelegraph