- Pump.fun initiates a significant overhaul of its creator fee model to enhance trading incentives.
- Alon Cohen confirms forthcoming sweeping changes for more trader-focused dynamics.
- Pump.fun’s native token, PUMP, rises over 10% post-announcement.
On January 10, Pump.fun’s Alon Cohen announced the necessity for adjusting its Dynamic Fee V1 mechanism, marking a significant shift in the platform’s fee structure.
The misalignment in creator fee incentives impacted trading dynamics, doubling transaction volume but lacking long-term sustainability, prompting market-driven changes to support trader activity.
Pump.fun’s Creator Fees Shift to Trading Focus
The immediate impact sees the introduction of a Creator Fee Sharing feature under Project Ascend. This system enables creators to distribute fees across multiple wallets, allowing more flexibility and transparency.
Market reactions were notably positive, with Pump.fun’s native token, PUMP, rising by over 10%. Industry experts, such as Adam Tehc, endorsed the update as a significant step forward in balancing the meme coin economy.
“Major changes to creator fees are coming; the next version will be more market‑driven, letting traders decide which narratives deserve creator fee support.” — Alon Cohen, CEO, Pump.fun
PUMP’s Market Cap Boosts Amid Restructuring
Did you know? The concept of creator fees has evolved significantly with the rise of decentralized finance, changing how creators are compensated in the crypto space.
As of January 10, 2026, Pump.fun has a market cap of $814.84 million and exhibits a 24-hour trading volume of $230.22 million, reflecting a positive market sentiment. PUMP’s price has increased by 6.42% over the past 24 hours, signaling confidence in the new fee model. Data provided by CoinMarketCap outlines that trading brought notable volatility, especially in the past 60 days with a decrease of 47.72%.
The Coincu research team analyzed these developments, suggesting that this fee model restructuring is likely to stabilize and potentially boost trading activities. While technological upgrades under Project Ascend aim to sustain developer enthusiasm, regulatory observers are yet to issue statements on these changes.
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