Pumpfun co-founder: Creator fee mechanism needs adjustment; its necessity will be determined by traders in the future.
TL;DR
Pumpfun co-founder states the creator fee mechanism needs adjustment as it's unsustainable and causes incentive mismatches. While useful for project-based tokens, it may not suit all Meme coins, and future changes will let traders decide on fee usage.
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According to Odaily Odaily, the co-founder of Pumpfun, the Solana Meme token issuance platform, stated that the current creator fee mechanism needs to be adjusted, and the platform will undergo a series of structural changes in the future.
The report states that Dynamic Fees V1, launched a few months ago, was initially intended to incentivize high-quality project teams to deploy tokens on the platform and drive project development through creator fees. The mechanism showed significant short-term effectiveness, with many creators previously unfamiliar with crypto applications issuing tokens and livestreaming on the platform, leading to a rapid increase in on-chain activity. However, the report points out that this growth model is unsustainable and has exposed key internal problems within the platform.
The company stated that while creator fees are beneficial for "project-based tokens" with clear teams and goals, they do not substantially change the behavior of ordinary Meme coin deployers. Instead, they may lead to incentive mismatch, causing users to favor low-risk token issuance rather than high-risk, but more crucial, trading activities. Pumpfun believes that traders are the core of the platform, and successful tokens are more likely to emerge in an environment where traders actively participate, provide liquidity, and bear risks.
Furthermore, it points out that existing creator fees lack sufficient functionality and a good user experience in terms of usage, limiting their potential role in narrative expansion and community building.
In summary, Pumpfun believes that creator fees remain an important tool for incentivizing high-quality projects, but optimizations are needed at the mechanism and user experience levels. Furthermore, not all tokens require creator fees. In the future, the platform will adopt a more market-driven approach, allowing traders to decide whether a token should have creator fees and how those fees should be used. Pumpfun stated that these adjustments are still underway, and more information regarding platform development and Pumpfun's future will be released later, expressing anticipation for the ecosystem's evolution in 2026.