Solana based coin issuer pump.fun has launched a new feature that will reward meme coin creators by sharing a 50% of the trading revenue generated by their tokens. The company in its X post said that once a coin is created, it can generate revenue every time someone places a trade.
How much will coin creators earn?
According to their X post, each time a person places a trade on a particular coin created on the platform it will translate to the creator earning 5 basis points (0.05%) in SOL. It goes on to stating that in case a coin sees $10,000,000 in trading volume, its creator will earn $5000.
The rewards will be applicable to newly created coins that already exist on the platform that are on the pump fun bonding curve as well as those that graduated to PumpSwap. They also noted that this will be an immediate on-chain payout that can be claimed anytime through Pump.fun’s creator dashboard.
The effort is in line with incentivizing and engaging coin creators who may not be rewarded like this in competing DEXs and continue to stay on pump.fun. A coindesk report claimed that most low-barrier Solana memecoin creators generally tend to buy their own coins at launch and then sell into retail demand and hope to cash in on the profits. Now, by providing developers with ongoing income from trading activity, they may witness an inflow of diverse developers who can help build a varied range of products on the platform.
Pump.fun’s creator-friendly incentive model can trigger more significant changes, pushing other exchanges to give similar rewards to stay competitive. Not just this, the move will also reduce the number of rug pulls and scam tokens, reducing pump-and-dump as long term trading volumes will help generate revenues and not only enjoy the instant liquidity during hype spikes.
