Pump.fun Overhauls Creator Fee System to Boost Trading

Pump.fun co-founder Alon Cohen announced a creator fee mechanism overhaul on January 10, aiming to promote healthier trading behavior on the Solana-based memecoin platform.

The update seeks to address skewed incentives, promoting sustainable trading practices and potentially reshaping market dynamics across Pump.fun’s ecosystem.

Pump.fun’s Creator Fee Update Aims to Boost Trading

Pump.fun’s co-founder Alon Cohen confirmed on X that the platform has restructured its creator fee system to promote trading rather than just token creation. Fee sharing now involves up to 10 wallets, allowing better distribution to creators. The updated model aims to better align platform incentives by adjusting the economic framework to favor trading activities.

The new fee structure’s immediate effects focus on encouraging active trading over passive token issuance, critical for the ecosystem’s liquidity. This shift is anticipated to foster more sustainable market behavior by engaging traders who provide necessary liquidity and volume.

“Dynamic Fees V1 encourages participation in low-risk activities (token creation) and does not stimulate high-risk activities (trading), which he calls dangerous because traders are a vital element of the platform,” – Alon Cohen, Co-founder, Pump.fun.

Solana’s Market Dynamics: Impact of Pump.fun’s Strategy

Did you know? Pump.fun’s emphasis on trading mirrors incentives in other platforms, which historically led to more engaged and active token communities.

As of January 10, 2026, Solana (SOL) was trading at $135.69 with a market cap of $76,567,375,829.35 billion. Over the past 90 days, the price has decreased by -30.20%, according to CoinMarketCap data. Trading volume was $1,709,528,552.95 billion, reflecting a significant -67.91% change over 24 hours.

The Coincu research team believes that Pump.fun’s changes will likely enhance Solana ecosystem’s market dynamics. By shoring up trading incentives, traders may see a revitalization of trading activities on the platform. This positions it well for long-term growth within a competitive blockchain landscape.