Pump.fun launches cashback model for new memecoins
Pump.fun is addressing user complaints that some token developers do not deserve creator fees by introducing a new mechanism called Cashback Coins.
The “memecoin factory” Pump.fun is making further efforts to counter accusations that the platform operates as a “profit extraction machine.” Its latest update, Cashback Coins, allows users to determine whether a token’s fees should go to creators or instead be distributed to traders and holders.
Although Pump.fun stated in its announcement that rewarding project creation generally has a positive impact on the growth and success of teams, developers and founders, the platform acknowledged that “many tokens succeed without a team or project lead, disproportionately rewarding token developers who do not deserve those fees.”
“Now traders can choose the tokens that best suit them, allowing the market to decide who gets rewarded and where the bar is set,” the statement said.
From now on, coin creators must choose between enabling trader cashback or retaining creator fees before launch. Cashback Coins redirect all creator fees to traders, and once selected, this decision cannot be changed.
A difficult choice between creators and holders
Unlike tokens that include creator fees, Cashback Coins will not support the Community Takeover (CTO) model. However, Cashback Coins will permanently reward traders and holders instead of developers.
The initiative will apply only to newly launched tokens and not to existing projects. With this update, Pump.fun likely aims not only to avoid criticism over enabling excessive creator profits but also to reduce the high rate of failed token launches.
According to a January report by CoinGecko, 11.6 million crypto projects failed in 2025 — the highest annual figure on record. These failures account for 86.3% of all project closures between 2021 and 2025.
The report suggests that declining token survival rates may be linked to overall market volatility during the year. However, memecoins were hit hardest, as new listings were dominated by low-effort tokens launched on platforms such as Pump.fun.
As we wrote, Pump.fun launches new fee model for meme token creators
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