PumpSwap has launched a new feature that will reward meme coin creators by sharing a 50% of the trading revenue generated by their tokens. The new model aims to rebalance incentives in Solana-based decentralized exchanges (DEX). It also highlights Pump.fun’s effort to increase developer participation on its PumpSwap DEX. 

The move will also help creators earn passive income from the trading activity on their launched tokens. Eligible participants will receive their share directly through the platform by connecting their original Pump.fun wallets.

PumpSwap to Reward Creators via the New Incentive Model

As announced by Pump.fun on May 12, the new revenue-sharing model for the PumpSwap DEX will allow token creators to claim their share directly. Meme coin creators who use the bonding curve method can connect their wallets to start receiving rewards. The payout is calculated based on 0.05% of the trading volume their token generates on PumpSwap.

CREATOR REVENUE SHARING is finally here!!!

50% of PumpSwap Revenue is now shared with Coin Creators 🤯🤯🤯

create a coin and start earning every time someone places a trade NOW

continue reading to learn more pic.twitter.com/XmdpFdIUhV

— pump.fun (@pumpdotfun) May 12, 2025

“Each time someone places a trade on your coin, you earn 5 basis points (0.05%) in SOL. That means that with $10,000,000 in trading volume, you earn $5,000. Additionally, these creators can claim the rewards at any time,” Pump.fun wrote.

Pump.fun believes that this model will accelerate and maintain creator engagement. It provides a financial incentive that is consistent with the increasing interest in meme coin trading on Solana. The structure may also draw more projects to be deployed on Pump.fun’s platform rather than competing DEXs that do not provide such incentives.  

PumpSwap’s Creator-Friendly Incentives Targets Solana DEX Market

The decision to offer meme coin creators 50% revenue comes as a step up effort for Pump.fun to gain greater market share among Solana DEX platforms. Currently, Raydium is the leader among Solana-based DEXs with $521.8 million in daily trading volume, according to the data by CoinGecko. In contrast, PumpSwap recorded $79.34 million in daily volume over the last 24 hours. 

The huge gap reveals the issue that PumpSwap is facing. However, the platform is picking up with over $296 million in transaction fees generated by Pump.fun year-to-date. This figure exceeded Ethereum’s $249 million in transaction fees in the same period, indicating an increasing demand for meme coin platforms.

PumpSwap enables tokens to list automatically once their bonding curve sale is over, thus avoiding migration to another exchange. This method minimizes friction and facilitates real-time liquidity. It also provides creators with faster access to secondary trading markets, which helps to develop community engagement around newly launched tokens. 

Market Dynamics may Change as Incentives Lure Developers

Pump.fun’s creator-friendly incentive model can trigger more significant changes in the Solana DeFi space. With more developers looking to generate recurring revenue from trading activity, other exchanges may have to implement similar benefits to stay competitive. The drive for creator monetization may transform token launches and liquidity plans.

Historically, creator-driven incentives have been the drivers of platform stickiness. Platforms that provide sustainable income models are likely to retain both developers and communities. This is particularly critical in the meme coin segment where hype that is short-lived tends to dictate project lifecycles.

Pump.fun also reported a significant recovery in platform activity this May. The Solana-based DEX has been processing daily revenues of between $1 million and $2 million after a dip in March. However, on its best day this year, it generated $14 million in trading revenue as per data by IntoTheBlock. This volatility demonstrates the fact-paced nature of the meme coin space, but also the potential for developers. 

Pump.fun Bets on Passive Income to Rule the Meme Coin Sector

The new initiative is one of the many ways Pump.fun is planning to stay competitive in Solana’s congested DeFi space. By providing passive income to creators, the platform hopes to create long-term loyalty and increase the number of high-quality token launches. It may also reduce the number of rug pulls and scam tokens as developers eye more benefits from long-term trading volume than instant liquidity grabs.

This strategy positions Pump.fun ahead of other platforms that only concentrate on launch tokenomics. Additionally, PumpSwap’s bonding curve launch model makes token trading easy and eliminates friction for new users and developers.

With the development in the meme coin market, the demand for creator-aligned platforms may increase. If other exchanges fail to compete with Pump.fun’s revenue-sharing model, they may lose liquidity and developers to this new competitor in the Solana ecosystem.