Key Insights:
- Pump.fun has introduced cashbacks for traders in the latest Solana news.
- The platform appears to be responding to the demand for a redesign of its incentives around trading activity rather than token creation.
- Under the original model, creators earned 0.3% of the fees generated by tokens they launched.
The latest Solana news indicates Pump.fun, the Solana memecoin launchpad, has adjusted its fee setup to put more money back in traders’ pockets instead of rewarding the people who deploy tokens.
This transition marks a notable change for a platform that once pulled in more than $15 million in fees in a single day at the height of the frenzy, according to reports.
The move comes following months of growing frustration in the community. Critics have argued that most traders struggled just to break even on Pump.fun, while meaningful profits remained out of reach for the majority.
In the latest Solana news, the platform now appears to be responding to that pressure by redesigning incentives around trading activity rather than token creation.
Solana News: Pump.fun Adds Cashbacks for Traders
In an update shared on X on Tuesday, Pump.fun said memecoin creators on Solana can now choose how rewards get paid out. They can keep the traditional Creator Fees, or they can push those incentives toward traders through a new Cashback Coins option.
That marks a shift from the platform’s earlier setup. Under the original model, creators earned 0.3% of the fees generated by tokens they launched.
In the latest Solana news, Pump.fun now puts that decision in the hands of the people minting the coins, with a clearer trade-off between creator payouts and trader incentives.
Still, Pump.fun argued that Creator Fees do not always make sense. The platform pointed out that many Solana memecoins take off without a real team or a clear project lead. As a result, the old setup often sent a bigger share of rewards to deployers, even when they did little beyond launching the token.
Creator Fees or Trader Cashback
Pump.fun said creators now have to make a clear call before they launch a token. They either stick with Creator Fees or switch to the Trader Cashback setup. After that, they cannot change their choice.
Meanwhile, Terminal, the trading tool built into Pump.fun, explained how the new perk works. Its Solana news reveals that Cashback Coins show up with every trade. Traders can only claim and use them inside the Terminal.
The timing also stands out. Analysts at on-chain data firm Santiment said on Friday that memecoins now look like they may be carving out a bottom.
They pointed to the mood shift across the market. Santiment said traders have started treating the meme cycle as finished, and that kind of surrender often marks capitulation. In other words, when everyone writes a sector off, Santiment said it can become the moment contrarian investors start watching more closely.
The update also arrives as Pump.fun’s fee engine cools off fast. The platform logged about $31.8 million in fees in January, a steep drop from the $148.1 million it pulled in a year earlier, which still stands as its strongest month on record.
Solana News: Pump.fun Revenue Slows as Criticism Grows
So far in February, Pump.fun has generated around $15.6 million. At that pace, it looks set to come in below January’s total.
The redesign also follows months of complaints about who actually makes money on Pump.fun. Critics said a thin slice of traders walked away with gains, while most retail users took losses.
Very few users have hit life-changing numbers on Pump.fun. Data related to Solana news showed that fewer than 13,700 wallets have crossed the millionaire mark on the platform. One X user, Coos, suggested the new setup could weaken the incentive for developers to keep launching fresh coins, especially if the biggest payoff shifts away from deployers.