Pump.fun, the largest memecoin launchpad on Solana (SOL), has unveiled a groundbreaking revenue-sharing model designed to support token creators and reduce token dumping. In an announcement made on May 12, the platform declared that it will now distribute 50% of all trading fees generated by memecoins directly to their creators.
How the Revenue-Sharing Model Works
Starting immediately, token creators will receive 0.05% in SOL for every trade of their token on Pump.fun. This means that if a project generates $10 million in trading volume, the creator stands to earn $5,000. Earnings are paid out instantly and on-chain, and can be redeemed via each creator’s Pump.fun profile.
To be eligible for revenue sharing, tokens must meet one of the following criteria:
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Be newly launched.
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Still be on the bonding curve.
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Have graduated to PumpSwap, Pump.fun’s decentralized exchange (DEX).
Addressing Token Dumps and Rug Pulls
The move aims to address a critical issue plaguing memecoin platforms—token dumps and rug pulls. Traditionally, creators on Pump.fun and similar launchpads only profited by selling their tokens, which often led to them cashing out rapidly once hype built up, causing massive price crashes.
This problem has been particularly problematic for Pump.fun, which has seen a surge of rug pulls. The platform’s ease of use makes it accessible to anyone, which has led to misuse. Notably, a 13-year-old was able to execute two rug pulls on the platform last year.
By shifting to a revenue-sharing model, Pump.fun incentivizes creators to maintain token health and boost trading volumes over time. Instead of relying solely on sales, creators can now earn passive income as long as their tokens are actively traded. This model encourages long-term commitment and discourages dumping at early stages.
Pump.fun’s Market Dominance on Solana
Despite its issues, Pump.fun remains the largest memecoin launchpad on Solana, accounting for $22.3 billion in trading volume so far in 2025—equivalent to 2.8% of Solana’s total protocol volume.
In terms of raw transaction count, Pump.fun is a powerhouse: in November 2024, the platform was responsible for a staggering 62% of all Solana transactions. This dominance underscores its importance in Solana’s memecoin ecosystem and its potential impact with the new revenue-sharing structure.
Will Revenue Sharing Improve Market Stability?
Pump.fun’s latest move marks an attempt to stabilize the volatile memecoin sector while aligning creator incentives with long-term growth. If successful, it could set a precedent for other launchpads struggling with similar issues.
With $22.3 billion in volume and a major presence on Solana, the success of this model could redefine how memecoin economies operate—shifting from quick cash-outs to sustainable growth.
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