In a strategic move to adapt to the evolving memecoin landscape, Solana-based launchpad Pump.fun has introduced a new feature that empowers traders to earn cashbacks, marking a significant shift from its original Creator Fees model. This change comes as the memecoin market shows signs of a potential bottom, with onchain analytics firm Santiment noting a classic capitulation signal.
The new feature, announced on X, allows token creators to decide whether their token should generate Creator Fees or reward traders through Cashback Coins. Previously, Pump.fun’s model allocated 0.3% of all fees generated by launched tokens to their creators. However, the platform recognized that not all tokens warrant such fees, especially when many achieve success without a dedicated team or project lead.
Empowering Traders and Redefining Rewards
With the introduction of Cashback Coins, traders now have the opportunity to engage with tokens they feel most aligned with, effectively letting the market decide who gets rewarded. This shift aims to create a more equitable and dynamic ecosystem, where the value is distributed based on actual engagement rather than just deployment.
Cashback Coins are generated on every trade and are accessible exclusively through Terminal, the integrated crypto trading platform on Pump.fun. This move is designed to incentivize active participation and reward those who contribute to the token’s liquidity and overall success.
Market Dynamics and Criticisms
The timing of this feature rollout is particularly significant, as Pump.fun has experienced a substantial decline in fees over the past year. In January, the platform recorded $31.8 million in fees, a 75.6% drop from the $148.1 million recorded in January 2025. Despite this, the platform has managed to bring in $15.6 million in February, putting it on track to fall short of its January total.
The decline in fees has been accompanied by criticism that only a small number of traders were profiting on Pump.fun, while the majority of retail traders were incurring losses. Data from Dune Analytics reveals that out of 58.7 million crypto wallets that have interacted with Pump.fun, only 4.76 million have profited between $1,000 and $10,000, while 969,780 wallets have posted winnings between $10,000 and $100,000. Less than 13,700 wallets have reached millionaire status on the platform.
Industry Reactions and Future Outlook
The new rewards model has been met with mixed reactions from the community. While many traders welcome the change, some developers, like X user Coos, have raised concerns about the potential reduction in incentives for launching new coins. Coos noted, ‘So devs have less reasons to push coins longer, as the most lucrative time is when coins are still on pf, and have just graduated where there is the most volume.’
In a broader context, Pump.fun’s shift in rewards comes as other platforms, such as Coinbase’s Base App, have sunset their Creator Rewards programs. Base App, which was launched in July 2023, paid around $450,000 to 17,000 creators over seven months, with an average earning of $26 per creator. The decision to discontinue the program reflects a strategic shift towards focusing on tradable assets.
As the memecoin market continues to navigate its challenges, Pump.fun’s innovative approach to rewarding engagement could set a new standard for other platforms. By placing the power in the hands of the traders, the platform aims to create a more sustainable and fair ecosystem, potentially reviving interest in the memecoin sector.
In the coming months, the success of Cashback Coins will be closely monitored by the crypto community, with many eyes on whether this model can indeed lead to a more equitable distribution of value and a resurgence in the memecoin market.
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