Pump.fun Acknowledges Creator Fee Mechanism "Incentive Distortion," Plans Comprehensive Adjustment
BlockBeats News, January 10th, Pump.fun announced that it will restructure the creator fee mechanism. Its co-creator Alon Cohen stated on the X platform that the current Dynamic Fees V1, while significantly increasing platform activity in the short term, may have "distorted the incentive structure" in the long term, failing to establish sustainable market behavior.
Cohen pointed out that the mechanism encourages low-risk large-scale token issuance but suppresses high-risk transaction activity crucial to the platform. "Traders are the core source of platform liquidity and trading volume, and this structure is dangerous," he said.
Looking back, he said that the initial effect of the mechanism was significant, with a large influx of new creators driving engagement through live streaming, among other methods. Pump.fun's bonding curve trading volume doubled within weeks, creating one of the most vibrant on-chain ecosystems since early 2025. However, the hype quickly subsided, revealing structural issues.
As a first-stage adjustment, Pump.fun will introduce a creator fee splitting mechanism, allowing creators or Community Take Over (CTO) administrators to proportionally distribute fees to up to 10 wallets after the token goes live. It also supports transferring token ownership and revoking update permissions. Cohen emphasized that Pump.fun team members will not take any creator fees under any circumstances. This feature is "entirely for frontline players," and fees can be claimed at any time without expiration.
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