Facts - what is pump.fun? : Pump.fun is a new kind of software company that uses the blockchain ledger to create an interesting new buisness. Pump.fun uses distributed ledger to allow anyone to create a publically traded digital artifact called a "token". It generates revenue primarily through transaction fees and token creation incentives on its memecoin launchpad. Here’s a breakdown of how it makes money:
Swap Fees: Pump.fun charges a 1% fee on all trades conducted on its platform. This applies to every buy and sell transaction for tokens created and traded on the platform before they "graduate" to decentralized exchanges like Raydium.
Token Graduation Fees: When a token reaches a market cap of approximately $69,000 to $90,000 (depending on the source), it completes its bonding curve and is listed on Raydium. Pump.fun earns a fee of 1.5 ($SOL) tokens for each token that successfully graduates.
Historical Token Creation Fees: Prior to August 2024, Pump.fun charged a small fee of about 0.02 $SOL (roughly $2–$4) for creating a token. Since then, this fee has been shifted to the token’s first buyer, making token creation free for developers. While this change incentivizes more token launches, it no longer directly contributes to revenue.
Incentives for Successful Tokens: Since August 2024, Pump.fun rewards token creators with 0.5 $SOL if their token completes the bonding curve and launches on Raydium. While this is an expense for Pump.fun, it drives platform activity, indirectly boosting revenue through increased trading and swap fees.
Revenue Scale
Pump.fun has generated significant revenue, with estimates nearing $500 million in total fees by February 2025.
In November 2024, it became the first decentralized application to surpass $100 million in monthly revenue, and on January 2, 2025, it recorded a single-day revenue high of $14 million.
The platform’s dominance is evident, accounting for 52.8% of DEX transactions in December 2024.
Additional Context
Pump.fun’s business model thrives on the high volume of memecoin creation and trading, with over 6 million tokens launched by January 2025. Its bonding curve model, which increases token prices as more buyers invest, encourages speculative trading, driving transaction fees. However, the platform has faced criticism for enabling scams and market manipulation, with many tokens failing to reach Raydium (only 1.41% success rate). Despite this, its low-cost, accessible setup and social media-like interface continue to attract users, sustaining its revenue growth.
IMO: Many of these businesses are various versions of them, like #Polymarket, and the new are examples of highly successful web3 companies using the execution DLTs.
