pumpfun

📅 January 9 | Solana and Memecoins
For much of 2024 and 2025, Pump.fun became the epicenter of the memecoin phenomenon on Solana, an open laboratory where thousands of tokens were born, exploded, or died in a matter of hours. However, beneath that avalanche of launches, something began to quietly break down: the incentives. While creators multiplied coins with little risk and low commitment, traders—the true engine of liquidity—beared all the volatility.

📖Pump.fun, the memecoin launch platform built on Solana, announced a significant overhaul of its creator fee system after concluding that the incentives implemented so far were not achieving their goal of improving the quality and sustainability of the market. The announcement was made by Alon Cohen, co-founder of the project, in his first X post in over two months, a detail that alone reflects the magnitude of the change.
Alon Cohen explained that the Dynamic Fees V1, introduced in September as part of Project Ascend, succeeded in attracting new creators and boosting on-chain activity, but did not substantially alter the behavior of the average memecoin creator. In practice, the system ended up incentivizing the creation of low-risk, low-commitment tokens, rather than fostering active markets and narratives capable of sustaining trader interest.
According to Alon Cohen, the core problem is that creator fees ended up disrupting the market's natural balance. While deployers could launch coins with little reputational cost, traders assumed the riskier role, providing liquidity, volume, and volatility. For Pump.fun, this distortion was unsustainable, since traders—not creators—are the true lifeblood of the platform.
The new adjustment introduces fee-sharing mechanisms, allowing teams to split revenue across up to ten different wallets, transfer token ownership, and revoke the contract's update authority. Furthermore, creators and administrators will be able to define specific fee percentages after launch, aiming for a more flexible and less automated model.
These changes come at a time of renewed activity. According to The Block, nearly 30,000 tokens were launched in a single day on Pump.fun, marking the highest daily level since mid-September. The surge suggests that, despite saturation, the appetite for memecoins remains strong, although increasingly constrained by the incentive structure.
For Pump.fun, this update is just the first of several planned leading up to 2026, in an attempt to rebalance an ecosystem that grew too rapidly and now faces its own contradictions.

Topic Opinion:
Adjusting fees isn't just a technical change; it's a policy within the protocol. If this redesign manages to return decision-making power to traders, we could see less noise and more real narrative.
💬 Will this change improve the quality of memecoins?

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