James Richardson
PumpSwap, the decentralized exchange launched by Pump.Fun, has rolled out a revenue-sharing initiative that could reshape the memecoin ecosystem on Solana. Under this new model, token creators will receive 50% of PumpSwap’s trading revenue, directly incentivizing them through a 0.05% payout in SOL per transaction.
If this system had been in place in April 2025, when PumpSwap recorded a massive $11.2 billion in trading volume, creators would have received approximately $5.6 million in total payouts.
PumpSwap primarily earns through swap fees. The current fee breakdown is:
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0.25% total fee per trade
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0.2% goes to liquidity providers
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0.05% remains with the protocol
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However, newly updated documents suggest an additional 0.05% is directed to a coin creator vault, bringing the total fee to 0.3% per transaction. This shift transforms PumpSwap into one of the first DEXs to reward token originators from protocol-level revenues.
Community Reaction: Divided Opinions on Creator Payouts
Despite the financial potential for creators, the feedback from the crypto community on X (formerly Twitter) has been mostly critical. Many users argue that incentivizing developers regardless of long-term commitment encourages low-effort or fraudulent token launches—commonly known as rug pulls.
“This is a horrible move. 99% of coins are CTO projects. Now we’re rewarding developers who rugged the community,” said pseudonymous trader 0xRiver.
Critics believe this revenue model undermines community-led takeovers (CTOs)—a common practice where users take over abandoned tokens and try to revive them.
Behind Pump.Fun: A Simplified Gateway to Solana Memecoin Creation
Founded by Noah Tweedale, Alon Cohen, and Dylan Kerler, Pump.Fun emerged in January 2024 as an easy-to-use memecoin launchpad on Solana. It enables users to:
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Create tokens with a simple UI
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Upload token images
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Choose a ticker
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Begin trading instantly
Initially, token creation cost around 0.02 SOL (~$3), though this fee was occasionally waived to drive activity. Pump.Fun’s bonding curve model ensures token prices increase as demand rises, beginning from a low entry price. Once a token reaches a market cap between $69,000 and $90,000, it “graduates” from Pump.Fun and becomes tradable on external DEXs.
PumpSwap’s Role in Evolving Memecoin Liquidity
To streamline the process of token migration from Pump.Fun, the team launched PumpSwap in March 2025. This DEX:
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Eliminates the 6 SOL migration fee
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Enables instant migration
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Provides liquidity through internal pools, bypassing external platforms like Raydium
With PumpSwap’s new revenue-sharing program, the platform is doubling down on creator empowerment, though not without controversy.
