Pump.fun’s creator fee model has failed, and the platform plans a market-led reform to let traders decide which coins will receive fee rewards. Alon explained that this strategic shift is directly tied to Pump.fun’s Dynamic Fees V1 experiment. The experiment initially drew in new creators quickly, but ultimately created a distorted incentive structure that favored low-risk token issuance over riskier trades. At the same time, the pace of coin issuance outpaced ongoing secondary market liquidity, weakening market structure and contributing to the problem.
Pump.fun has already implemented technical upgrades to reduce reliance on external trust for fee distribution. Creators can distribute fees across up to ten cryptocurrency wallets and have the ability to revoke coin ownership transfer and update rights. Unihax0r criticized the update publicly on X, arguing that the creator fee is merely a renamed tax. Co-founder Alon stated on January 9 that the creator fee structure failed to sustain ongoing trading activity, underscoring the need for change.
Creator fees need change. When Dynamic Fees V1 was introduced a few months ago, the goal was to help create more success cases in our ecosystem by giving top project founders and teams a strong incentive to launch their token on Pump.fun and drive it to success. Pump.fun stated that this led to a surge in streaming coin launches and a leap in overall activity. All this amounts to nothing.
The trenches need their Hyperliquid moment. We need a launchpad as a public good, where 99% of the value is redistributed to users. Last week, daily trading volume reached a record $2.03 billion, while Pump.fun’s fees totaled $3.87 million and daily revenue stood at $1.53 million. The Pump.fun token traded at $0.002357, up 2.52% in 24 hours, with a 24-hour trading volume of $154.8 million and a market cap of about $857.19 million.
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