Pump.Fun’s DEX PumpSwap introduces revenue-sharing for token creators

PumpSwap, the decentralized exchange tied to the Solana-based memecoin launchpad Pump.Fun, launched a creator revenue-sharing program. This move allocates 50% of PumpSwap’s trading revenue to token creators, according to the project.

This translates to a 0.05% (5 basis points) payout in Solana (SOL) per transaction for creators of eligible tokens. Based on PumpSwap’s April 2025 trading volume of $11.2 billion, the platform could have distributed about $5.6 million to creators.

PumpSwap generates revenue primarily through swap fees charged on trades executed on the platform. The fee structure is set at 0.25% per transaction, with 0.2% allocated to liquidity providers and 0.05% retained as protocol revenue. However, according to updated documentation, an additional fee appears to be sent to a coin creator vault account. This means the total updated fees could amount to 0.3% per swap.

The reaction to PumpSwap’s creator revenue-sharing program has been largely negative on X. Critics argue that it incentivizes poor behavior among token creators, particularly those associated with rug pulls or abandoning projects, while discouraging community-driven efforts like community takeovers (CTOs).

Several X users argue that the 0.05% fee allocated to creators encourages developers to launch tokens and continue earning revenue from trading fees without maintaining the project. Others expressed concern that the fee structure discourages community members from taking over abandoned projects.

“I think this is a horrible move. 99% of coins are legit CTO coins. People don’t want the dev, and now we are giving the dev money that he rugged. This is super bad,” commented pseudonymous trader 0xRiver.

Pump.fun is a launchpad on the Solana blockchain founded by Noah Tweedale, Alon Cohen, and Dylan Kerler. It was released in January 2024, aiming to simplify token creation and trading, primarily for memecoins.

The platform’s interface allows anyone to create a token for a small fee (initially ~0.02 SOL, or about $3, though creation fees were later waived at times to boost activity), upload an image, pick a ticker, and start trading instantly.

It operates on a bonding curve model: as demand for a token rises, so does its price, starting from a low base. Tokens trade exclusively on Pump.Fun until they reach a market cap of around $69,000 to $90,000 (thresholds have varied), at which point they “graduate” to a DEX.

In March, Pump.Fun launched PumpSwap to streamline the token migration process for its memecoin creators by offering instant migrations, eliminating the previous 6 SOL migration fee, and providing more liquidity through its own liquidity pools rather than relying on third-party DEXs such as Raydium.