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Solana’s Pump.fun Revamps Fee Model to Address Liquidity Risks

Solana’s Pump.fun Revamps Fee Model to Address Liquidity Risks

Author:
SOL News
Published:
2026-01-10 21:35:08
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[TRADE_PLUGIN]SOLUSDT,SOLUSDT[/TRADE_PLUGIN]

In a significant move for the solana ecosystem, memecoin launchpad Pump.fun has announced a major overhaul of its creator fee structure. This decision comes directly from co-founder Alon Cohen, who publicly acknowledged systemic flaws in the platform's previous 'Dynamic Fees V1' system. Cohen described the old model as 'dangerous' for platform liquidity, as it inadvertently incentivized creators to launch low-risk tokens, which stifled vibrant trading activity—the lifeblood of any decentralized exchange. The admission highlights a critical turning point for one of Solana's prominent launchpads, which had initially seen bonding curve volumes more than double under the flawed system. This proactive restructuring signals a mature approach to sustainable growth within the Solana DeFi landscape, aiming to correct misaligned incentives and foster a healthier, more liquid market for new token projects. The move is closely watched by the broader cryptocurrency community as a case study in protocol adaptability and risk management.

Pump.fun Overhauls Creator Fee Structure Amid Liquidity Concerns

Pump.fun, the Solana-based memecoin launchpad, is restructuring its creator fee model after acknowledging systemic flaws in its Dynamic Fees V1 system. Co-founder Alon Cohen admitted the current framework incentivized low-risk token launches at the expense of trading activity—a dynamic he called "dangerous" for platform liquidity.

The initial rollout of Dynamic Fees V1 saw bonding curve volumes more than double during what Cohen described as "2025's best on-chain conditions." However, the system failed to sustain meaningful trading volume while burdening users with poor UX design that led to failed trust-based setups.

New changes allow creators to allocate fee percentages across 10 wallets post-launch, with added controls for team ownership transfers. "Creator fees need change," Cohen emphasized, signaling Pump.fun's pivot toward fostering trader participation over speculative deployments.

Solana Tests Key Resistance as Network Activity Surges

Solana (SOL) enters 2026 at a crossroads, oscillating between $135 and $143 after an initial bullish push faltered. The $138 level now serves as a critical pivot—historically, failure to hold this zone has triggered sharp declines toward $125. Market participants await either a decisive breakout or another rejection to determine the next directional move.

On-chain metrics tell a divergent story. Daily active addresses on the Solana network have spiked to short-term highs, signaling robust user engagement despite price consolidation. This surge in network activity often precedes volatile price movements, suggesting accumulating demand beyond speculative trading. The resilience of these metrics could foreshadow sustained momentum if participation persists.

Solana Strengthens Network with Urgent Validator Update

Solana has issued an urgent call for validators to upgrade to version 3.0.14, targeting enhanced stability for its $76.8 billion ecosystem. The update, announced during U.S. trading hours, addresses critical patches for both staked and non-staked nodes. Network resilience remains a priority as Solana seeks to mitigate past criticisms of outages during peak usage.

SOL's price holds steady NEAR $136, with technical indicators suggesting potential directional shifts. The update coincides with growing transaction volumes and developer activity, reinforcing Solana's commitment to infrastructure reliability. Historical patterns suggest such validator updates often precede short-term price volatility.

Solana (SOL) Shows Bullish Signals Amid Market Recovery

Solana's network activity has surged by 55% in daily active addresses year-to-date, starkly outperforming Ethereum's 0.3% growth. This fundamental strength coincides with a technical breakout: SOL's price action has invalidated its previous downtrend structure after stabilizing above key levels.

The $138-trading asset now eyes a potential rally toward $160 as on-chain metrics and chart patterns align. Notably, Solana's scalability advantages are attracting real-world usage, with payment solutions like Remittix gaining traction alongside its DeFi ecosystem.

Market observers note the contrast between Solana's robust 2026 start and last year's volatility. The network's ability to sustain adoption growth during early-cycle conditions suggests institutional interest may be developing beyond speculative trading.

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