Pump.fun introduced a new rewards structure that gives traders a direct role in how fees are distributed across newly launched tokens. The Solana-based launchpad announced the update on X and framed it as a response to persistent criticism around who benefits from token creation.
"Creator Fees need change. Not every token deserves Creator Fees," the team wrote. "Now, users have the ability to decide whether a token truly deserves Creator Fees, or whether it makes more sense to reward the traders engaging with the token."
The new feature, called Cashback Coins, requires coin creators to select a reward structure before launch. Creators must choose between directing fees to traders or keeping the traditional creator fee model. The decision remains permanent after launch.
Creator Fees need change. Not every token deserves Creator Fees.
— Pump.fun (@Pumpfun) February 17, 2026
Now, users have the ability to decide whether a token truly deserves Creator Fees, or whether it makes more sense to reward the traders engaging with the token.
Cashback Coins are now live. Learn more 👇 pic.twitter.com/UbYoAbQ1Ya
Cashback coins alter incentive structure
Pump.fun said the change aims to correct imbalances in the platform’s existing fee system. The original model grants creators about 0.3% of fees generated by their tokens.
"Creator Fees are undeniably a net positive for helping teams, creators & founders grow & succeed. However, many tokens achieve success without a team or project lead, thereby disproportionately rewarding token deployers who don’t deserve the fees," the team wrote.
"Now, traders can choose to engage with tokens they feel the most aligned with, ultimately letting the market decide who gets rewarded and where the bar is set."
Cashback Coins redirect all creator fees to traders and holders. Tokens launched under that model cannot later switch to a different structure. Pump.fun said the choice locks permanently once the token goes live.
Market data
Pump.fun’s native token PUMP traded near $0.002198, according to CoinGecko data. Weekly performance showed gains near 13%, though monthly results reflected a drop near 15%. The price ranged between $0.001843 and $0.002355 during the past seven days.
Trading activity increased. Spot volume reached $110 million in the last 24 hours, up 56% from the previous day. Futures volume climbed 38% to $234 million, while open interest reached $174 million, based on data from CoinGlass.
Fee decline and criticism set the backdrop
The reward shift arrives after a sharp drop in platform fee revenue. Pump.fun recorded $31.8 million in fees in January, down from $148.1 million in January 2025, according to DeFiLlama. February totals reached $15.6 million so far and point toward another lower monthly result.
Data from Dune Analytics shows uneven outcomes among users. Out of 58.7 million wallets that interacted with Pump.fun, 4.76 million reported profits between $1,000 and $10,000. Another 969,780 wallets recorded gains between $10,000 and $100,000. Fewer than 13,700 wallets reached millionaire status.
The distribution fueled complaints from retail traders who reported losses while a smaller group captured large rewards.
Community reaction splits over long-term effects
Reactions emerged across the platform’s user base after the announcement. The change was embraced by some users, who presented it as a more equitable system. Concerns regarding developer incentives were voiced by others.
X user Coos questioned whether developers would remain committed to projects after launch under the new structure:
"So devs have less reasons to push coins longer, as the most lucrative time is when coins are still on pf, and have just graduated where there is the most volume."
The debate reflects broader uncertainty across the memecoin sector, where incentives, liquidity, and speculation often drive short product lifecycles.
Broader ecosystem changes add pressure
Other platforms adjusted their reward strategies during the same period. Coinbase shut down the Creator Rewards program on its Base app in February. The initiative launched in July and aimed to tie creator income to onchain activity. The program paid about $450,000 to 17,000 creators over seven months, with average earnings near $26 per creator.
Pump.fun’s shift arrives as memecoin platforms face tighter scrutiny over incentives and trading behavior. Some developers and traders argue that reward distribution shapes user participation and token lifespans.
Structural change arrives amid active market debate
Pump.fun framed Cashback Coins as a market-driven mechanism. The platform stated that traders now decide which tokens merit rewards. The structure ties fee distribution to participation rather than deployment alone.
The company said coin creators must pick between Trader Cashback or Creator Fees before launch. Cashback coins direct all creator fees toward traders and holders. Creator Fee coins retain the original model. Each path locks permanently after launch.
The update marks one of the most visible changes to the platform’s launch model since its rapid growth across the Solana ecosystem. The long-term outcome depends on adoption patterns and trader participation across new token releases.
Gunel Ismayilova
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