PumpSwap, a decentralized exchange launched by the meme coin platform Pump.Fun on the Solana blockchain, has unveiled a new revenue-sharing model intended to benefit token creators by allocating 50% of trading fees to them.
As part of this updated structure, creators of eligible tokens will receive 0.05% of each transaction conducted in Solana (SOL).
With PumpSwap reporting a trading volume of $11.2 billion in April 2025, this new payout scheme could have generated approximately $5.6 million for token creators within that month.
PumpSwap Charges 0.25% Trading Fee, Majority Goes to Liquidity Providers
The revenue for PumpSwap is derived from a 0.25% fee assessed on every trade. This fee is divided, with liquidity providers receiving 0.2% and the protocol retaining 0.05%.
However, recent updates to the documentation indicate an additional 0.05% is now allocated to a specific “coin creator vault,” bringing the total trading fee to 0.3% per transaction.
Despite the appearance of being a community-oriented initiative, the reaction from traders and users has largely been negative.
On the social media platform X, many expressed worries that this new framework might inadvertently support unscrupulous individuals who launch tokens only to abandon them, a tactic commonly known as “rug pulling.”
“This is a horrible move,” commented the pseudonymous trader 0xRiver.
“99% of coins are legitimate community takeover [CTO] coins. People don’t want the developer, and now we are giving the developer money from a project they rugged. This is super bad.”
ngl I think this is a horrible move 99 % of coins are legit cto coins people dont want the dev and now we are giving the dev money that he rugged this is super bad imo but we see how it goes
— 0xRiver (@0xRiver8) May 12, 2025
Others shared similar concerns, suggesting that the revenue-sharing model could undermine community-driven projects, particularly in cases where active community members take over or rejuvenate abandoned tokens.
Critics argue that compensating inactive or harmful developers may damage the platform’s long-term credibility and erode trust within the community.
Pump.Fun was initiated in January 2024 by founders Noah Tweedale, Alon Cohen, and Dylan Kerler, aiming to simplify the process of token creation on Solana.
Users can create a new token, complete with a customized ticker and image, for a minimal fee—originally around 0.02 SOL—and have it instantly listed for trading.
The platform employs a bonding curve model that increases token prices with demand, with tokens “graduating” to external decentralized exchanges (DEXs) once they reach a specific market capitalization.
To facilitate this transition, PumpSwap was introduced in March, allowing for immediate token migrations and eliminating a previous fee of 6 SOL.
Additionally, it offers native liquidity pools, lessening dependence on external DEXs like Raydium.
Pump.fun Relaunches Livestreams to 5% of Users
In April, Pump.fun reinstated its live-streaming feature for a select group of users, five months after suspending it due to a wave of harmful and controversial content.
Co-founder Alon Cohen stated that the feature would now be available to just 5% of users and would incorporate “industry standard moderation systems” along with clearly established content guidelines.
The initial removal of the live-streaming feature occurred in November 2023, after users began sharing disturbing content aimed at promoting their meme coins, including threats of self-harm or violence linked to specific price thresholds.
Industry observers, including Mikko Ohtamaa, co-founder of Trading Strategy, cautioned that without sufficient moderation, the platform could face shutdowns amid increased scrutiny from mainstream audiences.
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