The Solana-based memecoin launchpad began to share revenue generated by its PumpSwap DEX with coin creators on May 12.
Communities that revive memecoins abandoned by their creators will soon be able to accrue the developer’s share of trading fees, according to PumpFun founder Alon Cohen.
“CTO feature for creator revenue sharing coming soon,” Cohen teased on X.
The move is likely in response to community feedback on the recently rolled out creator revenue sharing feature, which entitles coin creators to 50% of the trading fees generated by their tokens on the Solana-based memecoin launchpad’s native decentralized exchange (DEX).
In the memecoin arena, it’s all too common for coin creators to sell off their holdings very early on, forcing the community of holders to take on the responsibility of managing and marketing the token. This is referred to as a community takeover (CTO), and while most fail, many successful memecoins such as Dogwifhat (WIF) have also taken this route.
The new CTO feature will address the main drawback of the existing revenue sharing model – rewarding coin creators who are no longer involved with their tokens – and provide a revenue stream for communities that have formed around these abandoned coins.
PumpFun’s sudden embrace of revenue sharing comes as its dominance of the Solana memecoin scene is being challenged by alternative launchpads such as Believe and Let’s Bonk.
It remains one of the most profitable projects in DeFi, having raked in over $700 million in fees since March 2024, according to DeFiLlama.
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