Crypto Platform Pump.fun Launches Revenue-Sharing Model 

Pump.fun’s co-founder, Alon Cohen, recently shared insights about the platform’s innovative approach to token creation, emphasizing its focus on meme coins and the tools it offers users.

Despite the challenges the platform has faced, including a sharp revenue decline, Cohen remains optimistic about the future of both Pump.fun and the meme coin market.

Known for its simplicity and speed in launching tokens, Pump.fun has seen tremendous success, with over 8.8 million tokens launched on the platform, representing a significant portion of Solana’s total token activity. However, Cohen acknowledged that the platform’s revenue had dropped by 95%. In response, Pump.fun is introducing a revenue-sharing initiative that will reward token creators by returning part of the transaction fees, encouraging more substantial projects and fostering growth in the ecosystem.

The platform’s bonding curve model, where token prices rise as demand increases, has played a pivotal role in Pump.fun’s past success, helping it generate over $600 million in total revenue. Cohen also highlighted that the platform is actively addressing issues common in the meme coin space, such as scams and exploitative projects, by introducing token-burning mechanisms and transparent fee structures.

Drawing inspiration from meme-centric platforms like 4Chan, Pump.fun’s design and communication style appeal to a younger audience passionate about meme coins. The platform’s user-friendly approach, paired with its community-driven philosophy, has contributed to its popularity.

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While the launch of PumpSwap sparked discussions about Pump.fun potentially shifting its business model to compete with decentralized exchanges like Raydium, Cohen clarified that Pump.fun remains focused on facilitating token creation and fostering community engagement. He emphasized that PumpSwap is designed to expand the ecosystem and provide more rewarding experiences for users, not necessarily to rival existing platforms.

Despite a downturn in the meme coin market, with its market capitalization dropping significantly from its peak in late 2024, Cohen believes that meme coins still have long-term potential. By integrating new features such as NFTs or gaming elements, these projects can evolve beyond speculative investments and offer more tangible value. Pump.fun plans to continue supporting creative projects while pushing for meaningful innovation in the space.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.