Emre Yumlu 
Solana-based memecoin launchpad Pump.fun has introduced a significant overhaul to its rewards structure. The platform is shifting incentives away from token creators and toward active traders, responding to months of criticism that most participants were failing to turn a profit.
The change marks a notable pivot in a model that once generated substantial daily revenue at its peak, but has since faced scrutiny over how rewards were distributed.
From Creator Fees to Trader Cashback
Under the previous structure, token creators received 0.3% of all transaction fees generated by the coins they launched, through a mechanism known as Creator Fees. Pump.fun now argues that this framework did not fairly reflect how many memecoins actually succeed. In numerous cases, tokens gained traction without an active team or clear leadership, yet deployers continued to collect a share of trading fees.
With the new system, developers must choose between two options before launching a token: retaining Creator Fees or enabling Trader Cashback through “Cashback Coins.” This decision is final and cannot be reversed after launch.
Cashback Coins are generated from trades executed via Terminal, Pump.fun’s integrated trading interface. The goal is to reward traders who actively support and trade specific tokens, effectively allowing market participation to determine how incentives are distributed.
Pump.fun: The Debate on Falling Revenues and Profitability
The update comes during a period of declining platform revenues. In January, Pump.fun recorded $31.8 million in fees, representing a 75.6% drop compared to the $148.1 million generated in January 2025—its strongest month to date. So far in February, the platform has accumulated $15.6 million, putting it on track to fall short of January’s total.
Data from Dune Analytics further highlights profitability disparities. Of the 58.7 million wallets that have interacted with Pump.fun, only 4.76 million earned between $1,000 and $10,000. Meanwhile, 969,780 wallets posted gains between $10,000 and $100,000, and fewer than 13,700 wallets reached millionaire status. These figures fueled criticism that profits were concentrated among a small minority.
A Broader Industry Shift
While Pump.fun is restructuring its incentive system, others are exiting reward programs altogether. Coinbase’s Ethereum layer-2 network, Base, shut down its Creator Rewards program on Feb. 10. Launched in July, the initiative paid approximately $450,000 to 17,000 creators over seven months, with average earnings of $26.
Pump.fun’s adjustment reflects a broader reevaluation of how incentives function within the memecoin ecosystem. Whether this shift strengthens trader engagement or dampens developer motivation remains to be seen.
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