Pump.fun, a standout player in the Solana meme coin market, has launched Project Ascend, aimed at making the entry of new cryptocurrencies more profitable and sustainable.
New Dynamic Fees Model
Pump.fun introduces a new fee structure called Dynamic Fees V1. Under this model, as a project scales, fees decrease, creating incentives for teams to stay with their communities. This updated fee structure will apply to all PumpSwap tokens, and according to the project team, is designed to significantly ease onboarding, making meme coin creation 'ten times more rewarding.'
Impact on Solana's Meme Economy
Pump.fun has emerged as a notable player in Solana's meme economy, recently surpassing 1.3 million active addresses in a month. This figure makes it the most widely used launchpad on the network. However, rapid expansion has also resulted in losses for over half of traders, with total losses exceeding $66 million. Project Ascend aims to shift the focus from quick speculation to sustainable project building, fostering healthier outcomes for users.
PUMP Market and Recent Changes
Investors have responded swiftly, with the price of the PUMP token jumping 14%. Recently, the team has retired $10.6 million worth of PUMP tokens, bringing the total buybacks to nearly $59 million, or about 4.3% of total supply. The launchpad's strategy is expected to solidify its position as the go-to platform for creators, particularly if adoption accelerates under the new fee structure.
Project Ascend from Pump.fun could change the paradigm of launching new cryptocurrencies by offering favorable terms for creators and reducing risks for traders. It still needs to demonstrate its effectiveness in the challenging economy of meme coins.
