Pump.fun adjusts fee mechanism: low-risk incentive issues to be resolved

【Crypto World】Pump.fun Co-founder Alon Cohen recently shared in-depth thoughts on the platform’s creator fee mechanism. The dynamic fee V1 launched a few months ago indeed brought many highlights—new creators quickly listed tokens on the platform, live streaming remained hot, on-chain activity hit new highs, and trading volume doubled. It sounds like a great achievement, but underlying issues have gradually surfaced.

This incentive model actually has a fundamental flaw: it heavily favors low-risk actions (such as simply creating a token), while neglecting high-risk behaviors that truly require capital and courage (actual trading). As a result, for ordinary meme coin deployers, the influence of the fee mechanism is limited, and creator fees have become somewhat trivial—for example, used to flatter celebrities to hype the community, with disappointing results.

Clearly, the current model cannot go far, and Alon Cohen has signaled that major updates are coming, with more optimization plans underway. The platform needs to find a new balance between incentivizing innovation and maintaining sustainability.