The meme coin launch platform Pump.fun has introduced a new reward model, shifting the focus from token creators to traders.

Creator Fees need change. Not every token deserves Creator Fees.

Now, users have the ability to decide whether a token truly deserves Creator Fees, or whether it makes more sense to reward the traders engaging with the token.

Cashback Coins are now live. Learn more šŸ‘‡ pic.twitter.com/UbYoAbQ1Ya

ā€” Pump.fun (@Pumpfun) February 17, 2026

Now, creators can choose to keep the Creator Fees or redirect payments to traders through a cashback mechanism (Trader Cashback). This decision is made before the asset's release and cannot be reversed.

According to the developers, not all creators of "funny coins" deserve rewards. Many projects thrive without a team or leader, leading to unfair enrichment of deployers.

Under the original model, creators received 0.3% of all fees generated by the tokens they launched.

In Terminal, the integrated trading platform within Pump.fun, it was clarified that cashback is earned from each trade and is available exclusively to their users.

Declining Fees and Criticism

The change in the reward model comes amid a decline in fees in January. In the first month of the year, Pump.fun's fees totaled $31.8 million, a 75.6% drop from $148.1 million in January 2025.

Source: DefiLlama.

Since early February, the figure has been around $15 million.

Pump.fun has also faced criticism for the small number of traders making profits on the platform.

Out of 58.7 million wallets interacting with the platform, only 4.76 million earned between $1,000 and $10,000. Fewer than 13,700 addresses achieved millionaire status.

Source: Dune.

Some community members supported the change, while others expressed concerns that the model might reduce developers' motivation to launch coins.

Wouldnā€™t this just decrease incentives for devs and increase incentive for multi wallet?

So devs have less reasons to push coins longer, as the most lucrative time is when coins are still on pf, and have just graduated where there is the most volume.

Hope we donā€™t see moreā€¦ https://t.co/N4SHdZWUgl

ā€” coos (@profcoos) February 18, 2026

ā€œDevelopers now have fewer reasons to promote meme coins, as the most profitable time for them is when coins are still on the platform or have just launched. Thatā€™s when trading volumes are highest,ā€ noted a user with the handle coos.

Itā€™s worth noting that in January, Pump.fun established a $3 million fund to support early-stage crypto startups.