Solana’s Pump.fun is implementing a revolutionary revenue-sharing model, allowing coin creators to earn a percentage of trading fees, thereby aiming to recalibrate developer incentives and foster sustainable community engagement.
Highlights:
- The revenue-sharing model grants creators 0.05% of the trading volume on their respective coins.
- This new feature seeks to mitigate pump-and-dump schemes, providing creators with a stable income stream.
- Pump.fun is dedicated to diversifying its projects and addressing creator feedback in its rewards system.
The initiative, announced recently, is set to distribute 50% of PumpSwap revenues directly to creators, translating to 5 basis points for each trade. This applies not only to newly issued tokens but also to those already integrated within the PumpSwap ecosystem.
On social media, the company confirmed, “CREATOR REVENUE SHARING is finally here!!!
50% of PumpSwap Revenue is now shared with Coin Creators!
Create a coin and start earning every time someone places a trade now!”
For every $10 million in trading volume, this translates to a payout of $5,000 in SOL to creators, with funds available for immediate withdrawal via the platform’s dashboard.
Cohen noted, “Our #1 goal is to grow the trenches. When the market expands, more participants join, communities strengthen, and everyone benefits.”
This model presents a significant shift in how creator incentives are managed in the memecoin sphere. Previously, developers primarily profited by purchasing their assets at launch prices and capitalizing on demand, often facilitating price manipulations leading to severe market repercussions.
By providing consistent revenue opportunities through trading activities, Pump.fun aspires to nurture a broader spectrum of projects, inviting more comprehensive usage of its platform.
In concise terms, Pump.fun now stands as a pivotal player in the crypto landscape, having facilitated the issuance of thousands of tokens since its launch in late 2023, with notable successes such as dogwifhat (WIF) reaching staggering market valuations.
