HomeCoinsAltcoinPump.fun introduces merchant cashbacks to optimize the Memecoin model

Pump.fun introduces merchant cashbacks to optimize the Memecoin model

-

Solana-based memecoin launchpad Pump.fun has introduced a brand new feature that shifts rewards to memecoin traders relatively than operators – a tweak to its fee model that when at its peak brought in over $15 million in a single day.

In a post on

Pump.fun's original model includes creator fees, so token creators receive 0.3% of all fees generated by the tokens they launch.

However, Pump.fun said that not all tokens deserve a creator fee, as many tokens succeed with out a team or project leader, thereby disproportionately rewarding token providers.

Creator fees need to alter. Not every token has creator fees.

Now users have the chance to determine whether a token truly deserves creator fees, or whether it makes more sense to reward the traders who interact with the token.

Cashback coins at the moment are live. Find out more 👇 pic.twitter.com/UbYoAbQ1Ya

— Pump.fun (@Pumpfun) February 17, 2026 “Now traders can decide to interact with tokens they most discover with and ultimately let the market resolve who gets rewarded and where the bar lies.”

According to Pump.fun, coin creators must make a choice from the creator fees or the merchant cashback model before launching. Once chosen, the choice is irreversible.

According to Terminal, a crypto trading platform integrated with Pump.fun, cashback coins are generated on every trade made and are only accessible through Terminal.

Analysts at on-chain analytics firm Santiment said on Friday that memecoins are showing signs of a possible bottom.

“This collective acceptance of the 'end of the meme era' is a classic give up signal,” Santiment said, explaining that when a market sector has been completely written off, it is commonly “time to take notice.”

Pump.fun fees have decreased during the last 12 months

Pump.fun's latest rewards feature comes because it recorded $31.8 million in fees in January, a 75.6% decrease from $148.1 million in January 2025 – the platform's best-performing month thus far.

Pump.fun has raised $15.6 million up to now in February, on the right track to fall wanting January's total.

Monthly change in Pump.fun fees since March 2024. Source: DeFiLlama

The change in reward model also follows months of criticism that only a small variety of traders on Pump.fun benefited while the overwhelming majority of outlets suffered losses.

Data from Dune Analytics shows that of the 58.7 million crypto wallets that interacted with Pump.fun, only 4.76 million made profits between $1,000 and $10,000, while 969,780 wallets posted profits between $10,000 and $100,000.

Less than 13,700 Pump.fun wallets have achieved millionaire status on the platform.

The latest feature was well received by many within the Pump.fun community, while others akin to B. X user Coos, pondered whether the reward model could reduce incentives for developers to introduce latest coins:

“So developers have less reason to push coins for longer, as probably the most lucrative time is when coins are still at Pf and have just arrived where there’s the best volume.”

Coinbases Base has discontinued its Creator Rewards offer

While Pump.fun has modified its rewards model, others have discontinued their rewards programs entirely.

On February 10, Coinbase's Base app is ending its Creator Rewards program as a part of a strategic realignment to focus exclusively on tradable assets.

The Creator Rewards program launched in July and was intended to make Base, Coinbase's Ethereum Layer-2, a more social ecosystem where activity results in revenue.

The base app

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph's editorial guidelines and goals to supply accurate and up-to-date information. Readers are advised to independently confirm the knowledge. Read our editorial policies https://cointelegraph.com/editorial-policy

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

01NODE Review 2026: Validator Performance, Security, Fees

01node is a validator and staking operator that presents itself as an infrastructure-focused PoS organization. The most useful strategy to evaluate a mid- to large-sized...

Ether Bulls Target $2.5K in Staking ETF Launch, RWA Market Cap Reflects Growth

Key Takeaways:Institutional sentiment is shifting towards ETH as elite funds reallocate capital from Bitcoin to Ether ETFs.BlackRock's ETH ETF pairs secure staking with a low...

New Bitcoin Whales Are Trapped Underwater, But For How Long?

Bitcoin (BTC) price continued to consolidate near $68,000 on Tuesday, but continued weakness below this level could generate additional selling pressure from the latest cohort...

Most Popular

bitcoin
Bitcoin (BTC) $ 67,886.00 0.78%
ethereum
Ethereum (ETH) $ 2,004.04 1.18%
tether
Tether (USDT) $ 0.999542 0.01%
xrp
XRP (XRP) $ 1.48 0.22%
bnb
BNB (BNB) $ 616.95 1.14%
usd-coin
USDC (USDC) $ 0.999841 0.01%
solana
Solana (SOL) $ 85.07 1.81%
tron
TRON (TRX) $ 0.281401 1.10%
dogecoin
Dogecoin (DOGE) $ 0.101163 1.15%
staked-ether
Lido Staked Ether (STETH) $ 2,265.05 3.46%