pump.fun Launches Holder Rewards and Cancels Cashback

• pump.fun has introduced Holder Rewards — rewards for users for holding tokens.
• Cashback mode is no longer available when launching new tokens.
• Creators can choose between the standard model with a Creator Fee and Holder Rewards.

The memecoin launch platform pump.fun announced two changes to its token mechanics: it has launched Holder Rewards and discontinued support for Cashback mode for new launches.

From now on, token creators can choose one of two models: a standard token with a creator fee (Creator Fee) or a token with holder rewards.

How Do Holder Rewards Work?

For tokens with Holder Rewards, fees are routed to a dedicated pump.fun distribution wallet. The platform automatically distributes rewards to holders several times per hour on a pro-rata basis. In other words, the more tokens a user has in their balance, the larger the share of rewards they receive.

Users holding tokens worth more than $20 are eligible for rewards. Rewards are paid out in the pair’s quote token. For example, for a pair with SOL, payouts are made in Solana, and for a pair with PUMP — in PUMP.

Teams and communities behind already launched tokens with Cashback or a Creator Fee can apply to switch to Holder Rewards. pump.fun noted that decisions on such applications will be made based on objective information and the potential benefit to the token and its community.

After switching to Holder Rewards, it will be impossible to return to the previous model.

For Custom Pairs, a fixed fee from 0.01% to 3% must be set during the transition. For pairs with SOL or USDC, a standard tiered fee structure will apply, depending on the token’s market capitalization.

According to pump.fun, protocol fees remain the same for all token types. For SOL/USDC pairs, a tiered model will apply: the fee decreases as the token’s market capitalization grows.

For Custom Pairs, the creator can set a fixed fee ranging from 0.01% to 3%. Once set, it cannot be changed.

pump.fun explained that the new Holder Rewards model is meant to encourage users to hold tokens for longer and support the growth of their communities.

As a reminder, pump.fun previously expanded the platform with tokenized stocks featuring the Custom Pairs function.

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