In a move that could shake up the crypto industry, PumpSwap, the decentralized exchange (DEX) built on Solana by Pump.Fun, has introduced a first-of-its-kind revenue-sharing model. The update gives memecoin creators a cut of the trading fees, turning meme coins from a trend into a potential income stream.
Here’s What’s Changing
Starting now, 50% of trading fees on PumpSwap will go to the creators of the tokens being traded. More specifically:
- PumpSwap charges a 0.25% fee on every swap
- 0.20% goes to liquidity providers
- 0.05% goes directly to the original token creator
This simple change could have big consequences. Based on $11.2 billion in trading volume in April alone, PumpSwap could have paid out over $5.6 million to token creators last month.
A Win for Innovation… or a Rug Pull Magnet?
The goal behind this model is to reward creativity and innovation. By giving memecoin creators a slice of the action, PumpSwap hopes to encourage more developers to launch unique and engaging tokens.
And it’s never been easier to do so. Thanks to Pump.Fun’s ultra-simple interface, anyone can:
- Launch a memecoin for just a few cents in SOL
- Instantly list it on PumpSwap — no extra fees, no delays
- Upload an image, pick a ticker, and go live in minutes
This user-friendly system lowers the barrier to entry, helping everyday users get into the crypto creation game. But there’s a flip side.
Critics Raise Red Flags
Some in the crypto community aren’t thrilled. Critics on X (formerly Twitter) warn that the guaranteed 0.05% fee reward could encourage bad actors. Why? Because developers might launch a token, walk away, and still earn passive income — even if the project gets abandoned.
This model may also discourage community-led project takeovers. If a dev bails and the community tries to revive the token, they’ll still be paying fees to the original (possibly inactive) creator. That’s led to frustration among users who see it as unfair.
A Double-Edged Sword?
The big question: Will this new model lead to a golden age of innovation or just another wave of low-effort, high-risk memecoins?
Some see it as a smart way to incentivize long-term development and make crypto more inclusive. Others worry it’s just opening the floodgates for speculative behavior — especially as crypto markets edge toward what some analysts call a $15 trillion ETF bubble.
Key Takeaways:
- PumpSwap shares 50% of trading fees with token creators — a first in DeFi.
- 0.05% of every swap goes to the original developer.
- The system could encourage rapid innovation and more token launches.
- But it also risks incentivizing rug pulls and creator abandonment.
- Debate grows over the long-term sustainability of this rewards structure.
Final Thoughts
PumpSwap’s new model is undeniably bold. It breaks away from traditional DEX norms and could help memecoin creators earn recurring income. But with great opportunity comes risk. As this model rolls out, the crypto world will be watching closely to see whether it fuels genuine innovation — or just feeds a fresh cycle of hype and speculation.
