Pump.fun Overhauls Creator Fee System to Enhance Liquidity
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 10 2026- Fee System Reform: Pump.fun co-founder Alon Cohen stated that the existing Dynamic Fees V1 system, while driving activity, failed to create sustainable market behavior, prompting a significant overhaul of the creator fee structure to improve liquidity and trading activity.
- Market Behavior Analysis: Although the platform's bonding curve volumes doubled within weeks of the initial rollout, showcasing strong on-chain conditions, this growth proved short-lived, revealing structural weaknesses in user experience and market building.
- New Mechanism Introduction: Pump.fun will introduce a creator fee-sharing mechanism, allowing creators and Community Takeover administrators to allocate specific percentages of fees to up to 10 wallets post-launch, incentivizing higher-quality projects and liquidity building.
- Market Dominance: Despite briefly losing ground to rival LetsBonk in July, Pump.fun quickly regained momentum through aggressive PUMP token buybacks and a revamped creator payout program, controlling approximately 75%-80% of Solana's memecoin launches.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
