In the news today Pump.Fun’s DEX PumpSwap Introduces Revenue-Sharing Scheme for Token Creators
- By [Mr Author]
- At CryptoInvestar
The decentralized exchange PumpSwap, closely linked to Solana’s popular memecoin launchpad Pump.Fun, has announced a new revenue-sharing programme designed to reward token creators.
But while the initiative aims to incentivise developers, it has already drawn criticism over fears it could encourage irresponsible behaviour within the volatile world of on-chain tokens.
Revenue Sharing for Creators
Under the newly launched programme, PumpSwap will allocate 50% of its protocol revenue directly to token creators.
This translates to a 0.05% (5 basis points) payout in Solana (SOL) from every eligible transaction involving their token.
Based on PumpSwap’s reported trading volume of $11.2 billion in April 2025, the platform could have distributed roughly $5.6 million to creators during that period alone.
PumpSwap generates income primarily through swap fees levied on trades conducted on the platform.
Its base fee is set at 0.25% per transaction, with 0.2% traditionally directed to liquidity providers and 0.05% reserved as protocol revenue.
However, updated documentation indicates that an additional fee is now routed to a vault account for token creators effectively raising total transaction fees to around 0.3%.
Mixed Reaction From the Community
The response to PumpSwap’s creator rewards has been largely negative across social media, particularly on crypto platform X (formerly Twitter).
Critics argue that the scheme could unintentionally promote reckless behaviour among token developers many of whom have previously been accused of launching so-called “rug pull” projects, where tokens are abandoned or manipulated for personal gain.
Some also fear the move might discourage community-driven initiatives such as Community Takeovers (CTOs), where traders rally to rescue and manage abandoned tokens themselves.
“I think this is a horrible move. 99% of coins are legit CTO coins. People don’t want the dev, and now we are giving the dev money that he rugged. This is super bad,” commented pseudonymous trader 0xRiver.
What Is Pump.Fun?
Pump.Fun, launched in January 2024 by founders Noah Tweedale, Alon Cohen, and Dylan Kerler, is a memecoin-focused launchpad on the Solana blockchain.
It was created to simplify the token creation process, allowing anyone to deploy a token, upload an image, and set a ticker symbol for a nominal fee initially around 0.02 SOL (roughly $3 at launch).
The platform uses a bonding curve model, where token prices increase as demand rises, beginning from a minimal base price.
Tokens trade exclusively within Pump.Fun until they reach a market capitalisation threshold typically between $69,000 and $90,000 after which they “graduate” to a decentralized exchange (DEX).
In March 2025, the team introduced PumpSwap, a DEX designed to facilitate the migration of tokens from Pump.Fun’s platform.
The move eliminated the previously required 6 SOL migration fee and enabled faster transitions to open markets by offering its own liquidity pools, reducing reliance on third-party DEXs like Raydium.
The final Verdict
While PumpSwap’s revenue-sharing programme is an attempt to further monetise and incentivise token creation within Solana’s memecoin ecosystem, concerns over its potential misuse highlight the ongoing tension between rapid blockchain innovation and responsible platform governance.
As the decentralised finance (DeFi) space continues to grapple with regulation, transparency, and community accountability, initiatives like this one are likely to remain divisive.
