In a significant development that has seized the attention of the crypto community, Pump.fun has unfurled a new revenue-sharing initiative that pledges to send 50% of all Pumpswap fees directly to coin creators.
This new feature aligns the incentives between traders, developers, and the broader community, and has the potential to offer some growth fuel to Solana-based meme coins, while also providing some financial security to creators. With the meme coin sector seeing a renewed interest—and an uptick in on-chain activity—some say that this will spark “meme season” again.
A New Model for Meme Coins on Solana
The meme coin has a long-standing relationship with the cryptocurrency space, most famously with Dogecoin and Shiba Inu. These coins have achieved viral marketing success and garnered massive attention and market caps largely through community-driven momentum and speculation on social media. However, this recent surge and attention toward meme coins seem to have opened the door for even more negative activity toward them. In particular, meme coins seem to be coming with an associated uptick in “rug pulls.” Memes pull in community-driven attention and momentum, but what happens when that ostensibly good thing now comes with an increased association with rug pulls?
The new model from Pump.fun could be a game changer for the meme economy, especially for those coins built on the Solana blockchain, which has been experiencing significant growth in the last 10 months. By redirecting 50% of the trading fees on Pumpswap to the token creators, this initiative offers a near-constant revenue stream for the developers of meme coins, making it more likely that they will maintain and further develop those projects.
The new arrangement encourages creators to stick around for the long haul; they’re now receiving a regular share of each swap made with their coin. That should not only bulk up the finances of the coin creators but also make them work a little harder to keep their projects active and engaged—for the sake of that regular remuneration.
Meme coins have been a “here today, gone tomorrow” phenomenon, making this one of the sector’s better ideas. (The suggestion that it might also help with another big meme coin problem—the likelihood of a rug pull—may not be as comforting as it seems.)?
Reducing Rug Pulls: Does the Integration Help?
A meme token creator and investor has rug pulls at the top of their list of concerns. Rug pulls account for a staggering percentage of meme token scams. According to industry data, 99.9% of meme tokens launched are ultimately rug pulls. In many meme token rug pulls, the assets amount to nothing because the developers have vanished and taken all the funds with them. The scenario depicted is, at the moment, the most likely situation for a meme token holder. When it happens, those who are left holding the worthless token are obviously not in much of a community.
Pump.fun hopes that by implementing this revenue-sharing model, will create an incentive strong enough to keep projects alive and on the up-and-up to prevent creators from giving up on coins and to keep them toward doing the right thing with their tokens and using them as designed.
If coin creators continue to earn a share of the fees generated by their coins, that could well be a powerful motivator to keep those tokens working, to keep them updated, and to keep the community engaged enough with them to trust and support the tokens.
Still, the real question is: will this integration help actually to stop rug pulls? The revenue-sharing model, after all, introduces a nice layer of financial stability for developers. But does it suffice? Rug pulls, as we have seen again just this month with the Fall Guys incident, happen when developers have minimal accountability. Providing an ongoing revenue stream, it seems, might not really be enough to ensure project integrity. That said, Pump.fun’s initiative at least raises the required bar for meme coin creators and introduces down-to-earth financial disincentives for abandoning projects once they get good publicity.
Eventually, more serious developers could be encouraged to enter the meme coin space, knowing that they can earn money from their efforts and still have a good relationship with the broader crypto ecosystem. And if these regulations also help to define which projects are serious and which ones are not (i.e., which ones are scams), then they could also be something of a milestone in the apparent story of the fight against rug pulls and fraud in the meme coin community.
Will This Revive Meme Coin Mania?
Established now is a fresh revenue-sharing model that has the everyone’s mind fixated on one question: Will it boost the moribund “meme coin season” back to life? Meme coins—those cryptocurrency tokens spawned by Twitter, TikTok, and other social media platforms—are notorious for some of the wildest price swings in the already crazy crypto market. Targeted by influencers for either laughable or serious investment pitches, they shoot to the moon and, just as often, plummet back to Earth when their worthlessness is realized. In what follows, we use the term “meme coin” to designate any sort of token with no real intrinsic value.
A continuous revenue stream for creators is a more sustainable model than what we’ve seen so far, where it’s just kind of a free-for-all and a tryst of sorts with meme coins. Trading volume is increasing on the Solana network. This might lead more developers to choose Solana as the network on which to launch their tokens, especially considering there’s mechanism by which ongoing earnings from every transaction can be realized.
Still, whether this will ultimately result in a proper meme coin revival seems an open question. The new model offers financial incentive for creators, but the community and market must ultimately choose which projects to support—and those choices could swing either way. If we navigate back into an era of engaging internet phenomena and memeable moments, these new coins could rise alongside that trend. A successful Solana meme coin might also cause a ripple effect (no pun intended) into a new meme coin era on other chains.
In conclusion, Pump.fun’s decision to share 50% of Pumpswap fees with coin creators could fundamentally reshape the meme coin landscape. By aligning the interests of token creators with the success of their projects, this move has the potential to reduce rug pulls, encourage sustainability, and attract a new wave of innovation to the meme coin market. Whether it can revive the elusive meme coin season or simply push the industry toward a more professional and stable future remains to be seen. Nonetheless, the shift towards more sustainable, creator-driven models could mark an important turning point in the GameFi and DeFi sectors.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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