Pump.fun Unveils Cashback Coins for Memecoin Traders

The Solana-powered memecoin launchpad known as Pump.fun has introduced an innovative feature that redirects rewards to active memecoin traders instead of solely benefiting token deployers. This adjustment represents a significant evolution in its fee structure, which previously peaked at generating more than $15 million in revenue within just one day.

Pump.fun Introduces Trader-Focused Cashback Option

Through an announcement shared on the X platform on Tuesday, Pump.fun explained that memecoin creators now have the flexibility to determine if their token genuinely warrants Creator Fees or if it would be more appropriate to channel those rewards back to traders via the newly launched “Cashback Coins” mechanism. This empowers creators to align incentives with community engagement.

Under the platform’s longstanding fee system, token creators traditionally receive a 0.3% cut from all fees produced by the tokens they deploy. However, Pump.fun has recognized that not every token justifies this creator-centric reward, particularly since numerous successful memecoins thrive without dedicated teams or project leaders, leading to outsized gains for deployers relative to broader participation.

Traders now have the freedom to interact with tokens that resonate most with them, allowing market dynamics to dictate reward distribution and establish performance benchmarks.

According to Pump.fun, creators are required to select either the traditional Creator Fees or the Trader Cashback model prior to launching their token. Importantly, this choice is permanent and cannot be altered once the launch process begins.

Terminal, the integrated crypto trading interface within Pump.fun, has clarified that Cashback Coins are earned with every trade executed on the platform and can exclusively be accessed and utilized through this Terminal feature.

This development arrives amid observations from Santiment, an onchain analytics provider, which noted on Friday that memecoins appear to be approaching a potential market bottom based on declining social sentiment. The firm described this widespread dismissal of the “meme era” as a textbook capitulation signal, suggesting that when an asset class is broadly abandoned, it often signals a contrarian buying opportunity for savvy investors.

Declining Fee Revenue for Pump.fun Over the Past Year

Pump.fun’s rollout of this rewards overhaul coincides with a noticeable downturn in its fee generation. Data indicates the platform collected $31.8 million in fees during January, reflecting a sharp 75.6% decline compared to the $148.1 million achieved in January 2025, which remains its record-high monthly performance to date.

As of now, February has seen Pump.fun accumulate $15.6 million in fees, positioning it to likely underperform its January figures if current trends persist.

Chart illustrating monthly variations in Pump.fun fees starting from March 2024. Data sourced from DeFiLlama.

The shift in the rewards framework also addresses ongoing critiques that Pump.fun has disproportionately favored a tiny subset of traders, leaving most retail participants with net losses despite high activity levels.

Analytics from Dune reveal that among the 58.7 million cryptocurrency wallets interacting with Pump.fun, just 4.76 million have realized profits ranging from $1,000 to $10,000. A smaller group of 969,780 wallets has secured gains between $10,000 and $100,000. Remarkably, fewer than 13,700 wallets have attained millionaire status through platform activity.

Community reactions to the new feature have been largely positive within the Pump.fun ecosystem, though some voices, including X user Coos, have raised concerns about its potential impact on developer motivation. One commentary highlighted that this model might diminish incentives for deployers to promote tokens beyond the initial high-volume phase on the platform, particularly after tokens “graduate” to external trading venues.

Base Network Discontinues Its Creator Rewards Program

In a contrasting move, while Pump.fun refines its rewards system, Coinbase’s Base network has completely terminated its Creator Rewards initiative. On February 10, the Base App announced the sunset of this program as part of a broader pivot toward emphasizing purely tradable assets.

Launched back in July, the Creator Rewards program aimed to foster a more socially driven environment on Base, Coinbase’s Ethereum Layer-2 solution, by converting user activity into tangible earnings for participants.

The Base App’s official X account reported disbursing approximately $450,000 to around 17,000 creators across seven months, equating to an average payout of about $26 per creator based on available metrics.