Pump.fun has introduced a trader cashback feature that shifts platform rewards from token creators to active traders, marking a notable adjustment to its memecoin incentive structure. Under the new model, creators must choose between traditional creator fees or a cashback-based system that redistributes rewards through trading activity.
The change follows sustained criticism that the platform’s original fee design disproportionately benefited token deployers while most traders struggled to generate consistent profits. Platform data shows only a minority of wallets achieved meaningful gains, highlighting structural concerns around sustainability in speculative token ecosystems.
From a market perspective, the update comes amid declining fee revenues and broader cooling in memecoin activity across the digital asset sector. The revised incentive framework reflects a competitive shift among crypto platforms toward user retention and engagement, particularly as trading volumes normalize and investor sentiment toward high-risk token categories remains cautious.
