Pump.fun has overhauled its creator fee structure as daily token launches on the platform near 30,000, the highest level since September. Co-founder Alon Cohen acknowledged that the Dynamic Fees V1, introduced in September under Project Ascend, unintentionally promoted low-risk coin creation over high-risk trading, which is the main driver of platform engagement.
Why the Fee System Changed
Cohen stated in the announcement that the original Dynamic Fees V1 attracted new builders and increased on-chain activity but failed to shift average deployer behavior. Low deployment costs led to a flood of low-quality memecoins, while trading activity lagged. Daily token creation jumped from roughly 5,000 in May to nearly 30,000, but average token lifespan and trade depth did not keep pace.
What the Update Brings
The update introduces three key features: creator fee sharing allows teams to split fees across up to 10 wallets; token ownership transfer enables project teams to hand over control after launch; revocable update authority locks contract logic post-deployment to prevent later tampering. Creators and CTO administrators can now assign specific fee percentages, shifting the model from one-time charges to recurring revenue sharing.
Future Plans
Pump.fun plans to let traders vote on which token narratives qualify for creator fees, aligning incentives with market demand rather than solely deployer decisions. Cohen said additional adjustments are planned through 2026 to balance creator earnings with long-term sustainability, moving from quantity-driven to quality-driven growth.
Market Context
The surge in token launches reflects renewed interest in Solana memecoins. Pump.fun reported that daily new tokens have climbed steadily since late May, driven by demand for low-cost issuance tools. However, the flood has sparked criticism—some projects go to zero within minutes, and traders report excessive slippage.