Pump.fun, the leading Solana-based memecoin launchpad, has acknowledged that its current creator fee system failed to deliver sustainable results. Co-founder Alon Cohen said the Dynamic Fees V1 model, introduced to boost platform activity, ended up distorting user behavior by prioritizing token minting over meaningful trading.
The platform initially saw rapid growth. Creators flooded in, token launches surged, and on-chain volume climbed to record highs in 2025. However, this momentum faded as the incentive structure encouraged low-risk coin creation instead of the high-risk trading activity that provides the liquidity and volume needed for a healthy market.
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A New System Focused on Traders
To address these issues, Pump.fun is rolling out a revamped fee-sharing system. The new model allows creators and community takeover (CTO) administrators to allocate creator fees across up to 10 wallets, transfer coin ownership, and revoke update authority. These changes are meant to reduce reliance on trust-based arrangements and increase transparency.
Importantly, Pump.fun staff will not take any share of the fees. The update shifts the focus away from automatic rewards and toward letting traders determine which tokens should benefit from fee distributions. Fees will be claimable at any time and will not expire.
Not everyone is convinced. Some developers have criticized the update as cosmetic, arguing that it fails to fix deeper problems in the incentive structure. Others worry that the new model could lead to pressure campaigns targeting high-profile figures to accept unwanted fee allocations.
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Legal Pressures Add to the Challenge
The fee overhaul comes amid growing legal scrutiny. A U.S. judge recently allowed new evidence in a class-action lawsuit accusing Pump.fun and affiliated entities of unfair practices during token launches. The complaint claims users lost billions due to insider advantages and opaque systems.
In parallel, the platform has faced allegations related to treasury activity, with its co-founders denying claims of improper fund transfers.
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Looking Ahead
Pump.fun has not released a full timeline for the changes, but the pivot marks a clear shift in its approach. Rather than reward token issuers by default, the platform is moving to a trader-led model that ties fees to active participation and liquidity.
The update aims to rebuild trust, balance platform incentives, and create a stronger foundation for growth. Whether it succeeds will depend on how the new structure plays out in practice – and whether traders remain confident in the long-term vision.
