Pump.fun Revolutionizes Fee System: Catalyst for New Dynamics in the Memecoin Arena

Pump.fun Overhauls Fee Model

The Dynamic Fees V1 model, launched under “Project Ascend” in September, aimed to increase content creators’ earnings by offering a tiered pricing system based on market value and to encourage long-term projects. However, the platform administration found this model ineffective in permanently transforming the behavior of the average memecoin developer.

Alon Cohen emphasized via social media that the content creator fees encouraged low-risk token production while overshadowing high-risk, liquidity-focused trades. According to Cohen, transaction users are the cornerstone of the platform, and current incentives do not adequately maintain this balance.

The first step announced in this new phase is the introduction of a “fee-sharing” feature. With this update, teams can distribute revenues across ten different wallets, transfer token ownership, and reclaim update rights. Additionally, it becomes feasible to set fee rates following the launch.

Notable Surge in Token Launches

The modifications to the fee model were unveiled during a period of notable activity growth on the platform. According to The Block’s data, about 30,000 tokens were launched on Pump.fun on Tuesday, marking the highest daily launch count since mid-September.

Cohen expressed that a more “market-oriented” approach would be adopted in the future stages. Therefore, investors and transaction users, rather than developers, will decide whether a token’s narrative deserves content creator fees. This approach aims to place actors who provide liquidity at the core of the incentive mechanism.

As 2026 approaches, the platform administration has announced that additional adjustments will be on the agenda. The goal is to create a structure that enhances sustainability within the memecoin ecosystem, recalibrating the balance between speculation and transaction volume.

The announcements suggest that Pump.fun is charting a roadmap focused not solely on short-term volume increases but also on long-term market health.