Pump.fun Co-founder Alon Cohen Announces Major Creator Fee Changes Are Coming

Get ready for a shake-up. Pump.fun co-founder Alon Cohen just signaled a major overhaul of creator fees is on the horizon—and the memecoin factory is about to get a whole lot more interesting for project founders.

The Fee Facelift

Cohen's announcement cuts straight to the heart of the platform's economics. While specifics remain under wraps, the move clearly targets the fee structure that dictates how creators profit from their token launches. It's a direct play to attract more builders by tweaking the financial incentives—because in crypto, if you're not optimizing for yield, you're just leaving money on the table for the next guy to scoop up.

Why This Matters Now

This isn't just tinkering. In the hyper-competitive memecoin arena, platform fees can make or break a project's viability. A more favorable cut for creators could trigger a flood of new launches, pumping fresh volume and liquidity into the Pump.fun ecosystem. It’s a classic growth hack: use the fee structure as a lever to outmaneuver rivals.

The Bigger Picture: Platform Wars

The update throws a new variable into the ongoing platform wars. By potentially boosting creator earnings, Pump.fun isn't just updating its terms of service—it's laying down a gauntlet. The move pressures competing launchpads to respond or risk a talent drain. After all, why would a creator settle for less elsewhere?

One cynical take? It's a brilliant piece of financial engineering—adjust a few percentage points on a spreadsheet, watch the community buzz generate more free marketing than any paid campaign ever could, and call it 'empowering creators.' The house always wins, but sometimes it lets you think you're getting a better seat at the table.

Bottom line: Watch the fee change. It’s not just a policy update; it’s a strategic missile aimed at capturing the next wave of memecoin mania.

Pump.fun to encourage trading

The creator rewards were one of the key incentives to keep up the pace of new token launches. However, Cohen noted the incentive produced the low-risk behavior of token creation, while increasing the risk for traders. 

‘Creator fees may have skewed the incentive for users to engage in low-risk activity (coin creation) instead of high-risk activity (trading), which is dangerous, because traders are the lifeblood of the platform,’ stated Cohen in an X post.

He added that the incentives should have better utility for the platform. The creator fees were used to draw in high-profile persons from the crypto space, including the WHITE Whale and others, he added. However, users often end up having to take over coins in order to keep them alive. 

According to Cohen, creator fees are a good idea for project tokens with a commitment to long-term existence. For other types of tokens, creator fees are not a good idea, he said. Pump.fun will focus more on traders for a more user-friendly and fair experience when the changes to creator fees are finally announced. 

Pump.fun community still worried about creator fees

The Pump.fun creator fees were seen as a way to exploit traders. Fees declined once a project achieved a higher valuation, leading some coin creators to abandon their memes and create new ones. 

For now, the Pump.fun mobile app will offer a more fair approach to distributing fees to ten addresses. Following a community takeover, the new coin owners can also stop or redistribute fees in another way. 

After the update, eligible fee recipients will have to claim the reward to receive it. Previously, teams relied on an airdrop and had potential problems with unverified wallets. Additionally, Dynamic Fees may increase the potential earnings of creators. 

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