Pump.fun has updated its reward model to favor traders over creators, allowing users to decide on creator fees.
Pump.fun, a platform known for meme coin launches, has revised its reward structure to prioritize traders over token creators. This shift allows users to determine whether a token merits creator fees or if those funds should instead reward trading activities.
"Creator Fees need change. Not every token deserves Creator Fees. Now, users can decide. Cashback Coins are now live!" — Pump.fun (@Pumpfun) February 17, 2026
Under the new system, creators can choose to retain the original creator fees or redirect them towards a cashback feature for traders, a decision that is finalized before the token's launch and cannot be altered afterward.
This change responds to feedback that not all developers of "funny coins" warrant earnings from creator fees, especially as many projects operate without substantial leadership, thereby enriching token deployers unfairly.
Previously, creators earned 0.3% of all fees from their launched tokens. The trading platform within Pump.fun, known as Terminal, clarified that traders can earn cashback from every transaction, but this is exclusive to registered users on the platform.
Market Dynamics and User Feedback
This overhaul comes amid a significant drop in transaction fees, which fell to $31.8 million in January, marking a staggering 75.6% decrease from $148.1 million the previous year. Since February began, fees have remained around $15 million.
Pump.fun faces scrutiny for the limited number of successful traders on its platform, as only 4.76 million out of 58.7 million wallets managed to earn between $1,000 and $10,000, and under 13,700 achieved millionaire status, according to recent data.
While some users welcomed the revised model, concerns were raised about its potential impact on developers' motivation. One community member argued that reducing incentives for creators could lead to fewer new coin launches, particularly during the critical early trading phase.
"Developers now have fewer reasons to promote meme coins, as the most profitable time for them is when coins are just launched. Trading volumes are highest then," remarked a user known as coos.
In an effort to support innovation, Pump.fun also established a $3 million fund in January aimed at fostering early-stage crypto startups.
