Pump.fun Creator Fee Changes Drive PUMP Token Rally

Pump.fun has announced upcoming changes to its creator fee model, a move that has immediately captured market attention and driven a notable rally in its native token, PUMP. Following the announcement, TradingView data shows that PUMP surged by nearly 11%, reflecting growing trader confidence in the platform’s evolving incentive structure.

The decision comes after Pump.fun introduced Dynamic Fees V1 several months ago, aiming to reward higher-quality token launches by sharing a portion of fees with creators. While this model initially succeeded in boosting creator activity and on-chain volumes across Pump.fun bonding curves, the team later acknowledged its shortcomings. Co-founder Alon explained that although the old creator fee system increased issuance, it did not sufficiently support healthy trading behavior or long-term value creation.

During the peak of this model, Pump.fun saw record activity in 2025, with a wave of new users issuing and promoting tokens directly on the platform. Institutional interest also grew, highlighted by Nasdaq-listed Fitell adding PUMP tokens to its Solana-based treasury strategy. Streaming-based token launches gained popularity as well, further increasing visibility for the ecosystem. However, the platform recognized that the incentives encouraged low-risk token creation rather than active, higher-risk trading, which is essential for liquidity and effective price discovery.

To address this imbalance, Pump.fun is now shifting toward a more market-driven system that prioritizes traders. The platform believes that without strong trading incentives, liquidity dries up and trust erodes. Previous steps, such as announcing a PUMP token buyback, were already aimed at reinforcing trader confidence. Alon also noted that creator fees often lacked real utility, with many projects struggling to translate them into sustained value.

Under the upcoming changes, traders will have more influence in determining which projects deserve creator fees, creating a fairer and more transparent environment. Pump.fun clarified that no team members will receive creator fees, emphasizing that this feature is designed purely for the community. Creators and CTO administrators will be able to distribute fee percentages through the Pump.fun app, with further details to be shared later.

The market has responded positively to this direction, with PUMP trading around $0.0024 after the announcement. The sharp price rally underscores optimism that Pump.fun’s revised fee model could strengthen market activity, liquidity, and long-term growth for the PUMP token.