New Revenue Model Empowers Coin Creators at PumpSwap
In Brief PumpSwap introduces revenue sharing for coin creators, allocating half of transaction fees. The model involves distributing a 0.05% SOL fee to creators, generating controversy. Community concerns include potential benefits to fraudulent projects and creator engagement.
The decentralized exchange, PumpSwap, part of the memecoin-extraction platform Pump.Fun, has introduced a revenue-sharing model for coin creators, marking an industry first. The platform allocates half of its transaction fees to project owners, offering payment in Solana $174 ( SOL ) to coin creators. In April 2025, the transaction volume reached $11.2 billion, indicating that approximately $5.6 million could have been distributed to creators based on the fee structure. Currently, PumpSwap charges a 0.25% fee per transaction; however, the updated models introduce an additional “coin owners’ account,” raising the total fee to 0.3% per transaction, with 0.05% going directly to coin creators.
Details of PumpSwap’s Revenue Sharing Model
The platform’s strategic alignment with its foundational objectives received positive feedback. While most decentralized exchanges allocate only a fraction of transaction fees to liquidity pools, PumpSwap directly involves coin creators in profit sharing. Focused on memecoin projects on Solana Blockchain, Pump.Fun aims to offer attractive advantages to its users, reinforcing their commitment to this direction.
April’s transaction volume further highlights the revenue distribution magnitude. With a transaction volume of $11.2 billion, the 0.05% share translated to nearly $5.6 million for coin creators. This support provides substantial added value for many smaller projects, enhancing both liquidity and project owners’ motivation.
Mixed Reactions from the Community
The cryptocurrency community on social media platform X had mixed reactions to the revenue-sharing model. Criticisms centered on providing additional income to developers of malicious projects. Some commentators expressed displeasure, arguing that “rewarding fraudulent coin creators with a 0.05% share is truly a bad idea,” reflecting their concerns.
Additionally, critiques were made regarding the oversight of community takeovers (CTOs) and the weakening motivation of independent groups to sustain the project. Concerns arose about coin creators earning transaction fees without engaging in the project’s sustainability. From this perspective, long-term community-focused projects could be at a disadvantage.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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