Co-founder of Pump.fun Alon Cohen announced more changes are coming to creator fees

Source Cryptopolitan

Pump.fun announced a new way of redistributing creator fees. A new version of dynamic fee sharing arrived, announced the platform’s co-founder, Alon Cohen. 

Pump.fun will update the distribution of its creator fees, announced the platform’s co-founder, Alon Cohen. The shift arrives just as Pump.fun recovered some of its activity with new launches and decentralized trading. 

Pump.fun announced creator fees may be shared with up to 10 wallets, to incentivize engaged teams. 

The exact evolution of fees and incentives will become more clear in the future. More changes will be coming soon, to incentivize the creation of quality assets. The project’s founder announced the upcoming changes after months of almost no posting, where token creation and trading in the trenches slowed down. As Cryptopolitan reported earlier, the introduction of creator fees led to significant gains for the first wave of streamers. 

The upgrade arrives as Pump.fun activity is growing again. The platform aims to incentivize trading, which is becoming its main source of fees, rather than constant new token minting, to generate and support more sustainable projects.

Pump.fun to encourage trading

The creator rewards were one of the key incentives to keep up the pace of new token launches. However, Cohen noted the incentive produced the low-risk behavior of token creation, while increasing the risk for traders. 

Creator fees may have skewed the incentive for users to engage in low-risk activity (coin creation) instead of high-risk activity (trading), which is dangerous, because traders are the lifeblood of the platform,stated Cohen in an X post.

He added that the incentives should have better utility for the platform. The creator fees were used to draw in high-profile persons from the crypto space, including the White Whale and others, he added. However, users often end up having to take over coins in order to keep them alive. 

According to Cohen, creator fees are a good idea for project tokens with a commitment to long-term existence. For other types of tokens, creator fees are not a good idea, he said. Pump.fun will focus more on traders for a more user-friendly and fair experience when the changes to creator fees are finally announced. 

Pump.fun community still worried about creator fees

The Pump.fun creator fees were seen as a way to exploit traders. Fees declined once a project achieved a higher valuation, leading some coin creators to abandon their memes and create new ones. 

For now, the Pump.fun mobile app will offer a more fair approach to distributing fees to ten addresses. Following a community takeover, the new coin owners can also stop or redistribute fees in another way. 

After the update, eligible fee recipients will have to claim the reward to receive it. Previously, teams relied on an airdrop and had potential problems with unverified wallets. Additionally, Dynamic Fees may increase the potential earnings of creators. 

Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum (ETH) Price Closes Above $3,900 — Is a New All-Time High Possible Before 2024 Ends?Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
Author  Beincrypto
Dec 17, 2024
Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
placeholder
Gold selling pressure persists as traders lock in profits ahead of US NFP reportGold (XAU/USD) remains under some selling pressure for the second straight day and slides back closer to the overnight swing low during the Asian session on Thursday. The downtick lacks any fundamental catalyst and is likely to remain limited amid a supportive fundamental backdrop.
Author  FXStreet
Jan 08, Thu
Gold (XAU/USD) remains under some selling pressure for the second straight day and slides back closer to the overnight swing low during the Asian session on Thursday. The downtick lacks any fundamental catalyst and is likely to remain limited amid a supportive fundamental backdrop.
placeholder
Silver Price Forecasts: XAG/USD extends its reversal below $76.00Silver (XAG/USD) is trading lower in an otherwise calm market session on Thursday.
Author  FXStreet
Jan 08, Thu
Silver (XAG/USD) is trading lower in an otherwise calm market session on Thursday.
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple — BTC, ETH and XRP defend key support as rebound scenario stays in playBTC holds above $90,000, ETH hovers near $3,128 at the 50-day EMA, and XRP steadies above $2.07 as traders weigh rebound targets and key downside levels.
Author  Mitrade
21 hours ago
BTC holds above $90,000, ETH hovers near $3,128 at the 50-day EMA, and XRP steadies above $2.07 as traders weigh rebound targets and key downside levels.
placeholder
Bitcoin Trader Sticks to $76K Target as Early 2026 Rebound Loses MomentumBitcoin's recovery is in jeopardy with bearish predictions dominating sentiment as traders cite ongoing resistance and technical patterns hinting at further declines.
Author  Mitrade
22 hours ago
Bitcoin's recovery is in jeopardy with bearish predictions dominating sentiment as traders cite ongoing resistance and technical patterns hinting at further declines.
goTop
quote