Pump.fun Introduces 50% Revenue Sharing for Solana Meme Coin Creators

Pump.fun, the dominant memecoin launchpad on Solana, has rolled out a game-changing revenue-sharing model aimed at helping token creators within the Solana memecoin ecosystem. The platform now shares 50% of its protocol fees directly with project founders.

This significant shift coincides with the launch of PumpSwap, a native decentralized exchange (DEX) designed by Pump.fun to consolidate liquidity and trading within its own ecosystem.

According to contextualizing the potential, the update introduces a 0.05% revenue cut in SOL for token creators on every transaction involving their token. With Pump.fun recording over $11.2 billion in trading volume in April alone, this model could have generated over $5.6 million in creator rewards under the new system for that month.

Significantly, the update marks a transition, moving away from creators primarily profit-taking through token dumping, towards a more sustainable income stream based on ongoing trading activity of their meme coins.

Traditionally, creators on memecoin platforms often profited by selling large portions of their tokens shortly after launch. This often sparked community mistrust and led to the perception of many projects as potential rug pulls. Now, with Pump.fun offering automatic earnings from transaction volume, developers have a clear long-term incentive to grow and support their communities.

Besides encouraging better creator behavior, the model may inspire more serious and innovative meme projects. By earning passive income through transaction fees, developers may feel less pressure to exit early. Moreover, creators can now monetize engagement instead of market manipulation, potentially leading to stronger token longevity.

To qualify for the Pump.fun revenue-sharing model, tokens must either remain on the bonding curve or migrate to the new PumpSwap DEX. The earning period for creator rewards began on May 12, 2025. Token creators can redeem their earned SOL directly on-chain from their Pump.fun profiles.

While the from Pump.fun offers clear promise for token creators, it has also faced some criticism. Some users argue that offering income without requiring ongoing project development may still enable low-effort scams. Additionally, skeptics worry it could limit community-led takeovers if creators remain financially tied to inactive projects.

Nonetheless, this update may help Pump.fun address long-standing complaints. The platform previously drew backlash for collecting massive fees without offering rewards or airdrops to users. Now, by distributing a share of its profits, Pump.fun is taking a step toward regaining trust and improving user perception.

Pump.fun continues to dominate Solana’s memecoin ecosystem. It accounted for over 60% of Solana network transactions in late 2024. Its decision to launch PumpSwap and thereby reduce reliance on external DEXs like Raydium signals a broader push.

This move clearly aligns with Pump.fun’s appetite for ecosystem independence with PumpSwap and new creator incentives, further solidifying its market position.