The Controversy Surrounding Pump.fun’s Creator Revenue Sharing Program: Discussing the Importance of Value Returning to the Community in the Context of “Fostering Fraud”

05/13/2025

Pump.fun Launches Creator Revenue Sharing Mechanism, Sparking Heated Market Discussions

Pump.fun announced yesterday the launch of a creator revenue sharing mechanism, which will share transaction fees with token creators, igniting heated discussions in the market. While the community criticizes that this move aims to correct the incentive mechanism and promote the sustainability of the platform, there are significant concerns about the potential exacerbation of liquidity loss and the facilitation of fraud risks. Whether this update represents a breakthrough or a crisis remains to be tested by the market.

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Pump.fun’s incentive mechanism is finally underway: creators will share transaction fees.

Pump.fun’s newly launched “Creator Revenue Sharing Program” indicates that token creators can earn 0.05% of SOL from each transaction on their own DEXPumpSwap.

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

— pump.fun (@pumpdotfun) May 12, 2025

For example, if a certain token achieves a trading volume of $10 million, the creator could earn $5,000. This includes:

Newly created tokens
Tokens still trading on the platform’s curve mechanism
Tokens that have “graduated (successfully launched) to PumpSwap”

Users can log in to their original wallets via the official website and click on the “coins” page to claim their earnings.

Community Strongly Opposes: Fear of Accelerating Liquidity Collapse and Facilitating Rug Pulls

However, this mechanism has triggered a significant backlash, with community members worrying that this move will allow unscrupulous creators to profit, further aggravating PvP (Player vs. Player) risks:
“99% of token creators are just serial scammers.”
“Sharing profits with rug pullers? This is terrible.”
“This is essentially a mechanism that promotes rug pulls.”

It is evident that the community’s trust in the concept of revenue sharing with token creators is extremely fragile, and this opposing sentiment seems to be deeply rooted in the crypto space.

Founder Alon Explains Initial Intent: Repairing the Rift Between Creators and the Community

Founder Alon quickly emphasized in his personal tweet that this program aims to address two major structural issues:

Profit misalignment between token creators and holders: Creators, as early holders, tend to sell at high points for profit, leading to a conflict of interests with holders.
The stigmatization of token creation: Honest creators choose to remain hidden for fear of being labeled as “ruggers,” which inadvertently empowers malicious creators.

In principle, through the revenue sharing mechanism, creators will have a greater incentive to maintain the long-term development of their projects, reducing short-term arbitrage behavior.

The Importance of Value Returning to the Community: Revenue Sharing is a Required Question, Not an Optional Fill-in

In a decentralized world, both the platform and users are ecosystem builders, effectively in the same boat; when there is a lack of positive sentiment and value circulation between the two, it will ultimately lead to a loss of trust and ecological collapse.

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As crypto KOL @waleswoosh previously stated: “If future mainstream platforms cannot share value with the community, they will inevitably be replaced by more open new platforms.” If Pump.fun fails to establish a sound incentive system, it risks repeating the mistakes of Opensea after the bull market, becoming a target of criticism.

Crypto KOL Crypto Weituo also expressed: “Those projects trying to copy and paste Web2 business minds or models into Web3 are almost universally doomed to fail,” highlighting the importance of liquidity, which is the users and community, in the decentralized world.

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Currently, Pump.fun’s changes are undoubtedly a well-intentioned initiative aimed at reshaping market behavior through institutional design. However, in the face of community skepticism, lack of trust, and market uncertainty, whether this program can realize its vision remains to be seen. The Pump.fun team has also promised to continuously adjust based on market feedback, attempting to find a balance between innovation and risk.

Risk Warning

Investing in cryptocurrencies carries a high degree of risk, and prices can fluctuate wildly, leading to a total loss of principal. Please assess risks with caution.