Key points

  • New Pump.fun launches can use a Holder Rewards model that redirects creator-side fees into automatic pro-rata distributions.
  • Eligible wallets must hold more than $20 of a participating token, with rewards paid in the trading pair's quote asset several times per hour.
  • Cashback is no longer available for new launches, and existing eligible tokens that migrate to Holder Rewards cannot reverse the change.

Pump.fun changes who receives selected trading fees

Pump.fun introduced a Holder Rewards token model on September 12, changing how a portion of trading fees can be distributed on the Solana-based launchpad. Instead of directing the relevant fees to a token creator or returning them to active traders through Cashback mode, participating launches can route them to people who continue holding the token.

The platform said creators launching a token can now choose between its standard Creator Fee model and Holder Rewards. In the rewards model, applicable fees are sent to a Pump.fun distribution wallet and then allocated automatically among eligible holders. The launch does not turn every token on the platform into a rewards token; the model must be selected or adopted for that specific asset.

Related reporting: Fomo Beats Pump.fun in Daily Solana Revenue With $1.76M

Eligibility and payouts

According to Pump.fun's announcement and independent reports, a wallet must hold more than $20 worth of an eligible token to participate. Distributions are calculated pro rata, so a larger qualifying balance receives a larger share. Payments are made several times per hour rather than on a single daily schedule.

Rewards arrive in the quote asset used by the trading pair. A token paired with SOL pays its holder distributions in SOL, while a PUMP-quoted pair pays in PUMP. That distinction matters because recipients are exposed to the price and liquidity of the quote asset as well as the reward token they continue to hold.

Cashback ends for new launches

The update also removes Cashback mode as a choice for newly created tokens. That earlier format redirected creator fees to traders according to trading volume, favoring activity rather than ownership duration. Existing Cashback tokens can continue operating, and previously accrued cashback remains claimable, according to reports that reproduced the platform's terms.

Existing Cashback and Creator Fee tokens may apply to switch to Holder Rewards. Pump.fun said an approved conversion is permanent: a project cannot return to its earlier fee model afterward. Creators and communities therefore need to assess the change before migrating rather than treating it as a temporary promotion.

Fee structures still vary by pair

The platform's protocol fees remain unchanged across the token models. Tokens paired with SOL or USDC continue to use Pump.fun's tiered structure, in which the fee rate changes with market capitalization. Custom pairs that convert to Holder Rewards must choose a fixed fee from 0.01% to 3%, and that selected rate cannot later be edited.

Rewards are not guaranteed returns

The amount received will depend on trading activity, the applicable fee rate, the wallet's share of qualifying holdings and the value of the quote asset. Pump.fun has not promised a fixed yield. Holding a reward-enabled token can still produce losses if its market value falls, liquidity weakens or activity declines, and the new model does not remove the wider risks associated with newly launched tokens.

Why the change matters

The redesign shifts Pump.fun's incentive from repeated trading toward continued ownership, while giving launch teams another way to direct fee revenue. Its longer-term effect remains uncertain: rewards may encourage steadier holder bases, but they may also concentrate payments among larger wallets. Adoption data and actual distribution history will be needed to judge whether the mechanism changes user behavior or merely reallocates the same fee pool.

Sources

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