Fee Model Revamp Reshapes Memecoin Landscape on Solana

Pump.fun, renowned for its innovative memecoin operations within the Solana network, is set to redefine its fee structure to enhance creator engagement. Co-founder Alon Cohen unveiled this strategic shift, marking a new direction for the platform, which recently hit a peak in daily token launches.

Pump.fun Overhauls Fee Model: What’s Changing?

The original Dynamic Fees V1 system, introduced in September under “Project Ascend,” aimed to boost creator earnings by implementing a tiered pricing approach. However, it fell short of transforming memecoin developer behaviors as intended. Alon Cohen has criticized the current fee model for incentivizing safe, low-risk token production, which led to the neglect of liquidity-centric trades.

Cohen stated that users powering transactions are the lifeblood of the platform, yet the incentives were not adequately aligned to support this dynamic. Thus, a new “fee-sharing” model is now being introduced. This innovative feature allows revenue distribution across multiple wallets while granting rights to tokens and updates post-launch.

Why So Many Tokens Now?

The revisions occurred during a noticeable surge in memecoin activity on Pump.fun. Recently, approximately 30,000 tokens were launched in a single day, marking a significant uptick in activity. This growth highlights the potential success of the revamped fee model.

Cohen emphasized that a “market-oriented” strategy would guide future initiatives. Instead of developers, investors and users who engage in transactions will now have a say in determining content creator fees. This shift aims to prioritize those providing liquidity in the ecosystem.

Looking towards 2026, platform leaders anticipate further modifications to favor long-term sustainability over short-lived spikes in activity, thereby reorienting the balance from mere speculation towards robust transaction volumes.

Key points from this shift include:

• Implementation of a “fee-sharing” feature to incentivize diverse token creation.
• Record-breaking token launch activity indicating strong engagement.
• Planned adjustments for a sustainable memecoin market by 2026.

Cohen’s approach underscores Pump.fun’s commitment to a thriving ecosystem by not only bolstering transaction volume but also ensuring market longevity. The revisions invite creators and users to participate in shaping a vibrant and responsive memecoin platform.