Pump.fun has stated that there would be changes to its creator fee model, which triggered a spike in the price of its native token, PUMP. According to the data by TradingView, the token has increased by nearly 11% following the announcement.
Why Did Pump.fun Reconsider Creator Fees?
Dynamic Fees V1 was launched by Pump.fun a few months ago to encourage more high-quality token launches. This was to compensate serious projects with a portion of the fees. However, the Pump.fun co-founder Alon commented that the old system of fees has to be improved.
The development represents a change in how the platform ensures there is balance in the incentives for token creators and traders. The team added that the initial model worked as creator activity and on-chain volumes for all Pump.fun bonding curves increased.
There has also been a rise in institutional interest, with Nasdaq-listed Fitell including PUMP tokens as part of its Solana-based treasury strategy. In addition, the popularity of streaming-based token also rose at that time.
A large number of new users started issuing and promoting tokens right on the platform. As Pump.fun stated, the trend reached its highest activity levels in 2025.
Still, the platform acknowledged that there were negative aspects of the model. Notably, most memecoin deployers were not affected by these creator charges.
Why Pump.fun Is Focusing On Traders
However, the incentives encouraged low-risk token issue rather than higher risky trading. In the absence of active trading, the liquidity will dry up and the price discovery will be weak. As a result, Pump.fun has to modify its strategy to encourage market participation using a better reward system.
Steps to improve trader trust have been implemented previously by the platform. For instance, Pump.fun announced a buyback on PUMP. Alon further remarked that creator fees did not have any real utility.
Numerous projects had difficulty in leveraging fees to increase their value over the long term. To deal with this, Pump.fun is shifting towards a market-driven system.
The upcoming changes will allow traders to determine which crypto projects deserve creator fees. According to the platform, this will make the environment between creators and traders fairer.
PUMP Price Rallies on Change in Fee
Pump.fun explained that no member of the team will be accepting creator fees. This is purely a token community feature, which lets creators and CTO admins distribute fee percentages to various recipients through the Pump.fun app.
Pump.fun explained that they will elaborate later. The future changes were major as described by the team but it was not put on a schedule.
Traders seem to be confident in the direction the project is taking. This was manifested in the jump in the price of PUMP. PUMP traded around $0.0024 gaining almost 11% in the day.
Source: https://coingape.com/pump-fun-announces-new-upgrades-to-creator-fee-model/
