Solana memecoin platform Pump.fun has launched a trader cashback reward model following a steep decline in revenue and data showing most users lost money. Creators must now choose between traditional fees or the new cashback system, which redirects fees to active traders to boost retention and liquidity.
Solana memecoin launchpad Pump.fun introduced a trader cashback reward model. The platform discovered that most users lost money from trading, prompting this incentive shift.
The new model will redirect trading fees to active traders to encourage retention and liquidity. This follows a dramatic revenue fall over the last year.
Before launching a token, creators must elect to use the standard 0.3% creator fee or opt into cashback coins. Once chosen, this model cannot be changed.
The move represents a shift towards activity-based incentives. It rewards trading participation instead of just token deployment.
Under the new model, cashback coins are generated for each trade executed on the platform’s Terminal. The reward is based on trading volume, not the number of tokens created.
Pump.fun stated “Not every token deserves Creator Fees” in a social media announcement. The market is empowered to decide which tokens attract user activity and rewards.
Data from DeFiLlama shows fees generated by the platform fell 78% from $148.1 million in January 2025 to $31.8 million in January 2026. February 2026 revenue is trending even lower.
Analysis from Dune Analytics indicates most of the 58.7 million wallets recorded losses. Only 4.76 million wallets generated between $1,000 and $10,000.
According to Santiment, memecoins are currently in a state of capitulation, which historically precedes a speculative rebound. This activity-based incentive trend mirrors moves by other companies like Coinbase, which discontinued its creator rewards program.
