- Payment Policy Changes and New Incentives
- Bonding Curve Mechanism: Fair Access for All
- Pump.fun's Growing Popularity Amid the Meme Coin Boom
[Pump.fun](https://bsc.news/post/what-is-pump-fun), a popular platform for creating meme coins, has removed the fee for creating tokens, making the process free for users.
Payment Policy Changes and New Incentives
Pump.fun has removed the previous $2 fee for creating tokens, and this cost will now be transferred to the first buyer of the new token. The platform has also introduced new incentives for creators, offering 0.50 SOL ($80) if their tokens are listed on Raydium, a decentralized exchange based on the Solana blockchain. These measures are aimed at attracting more users and increasing the number of successful token launches.
Bonding Curve Mechanism: Fair Access for All
Pump.fun uses a unique bonding curve mechanism for launching and trading tokens. This model ensures fair access to new coins, preventing the pre-sale advantages often seen in other crypto projects. Under this system, a token starts at a base price, and as more people buy it, the price increases predictably. Once a token reaches a market cap of $69,000, it qualifies for listing on Raydium, allowing it to be traded more widely beyond the Pump.fun platform. The platform also burns the liquidity provider (LP) tokens after listing, effectively locking the liquidity.
Pump.fun's Growing Popularity Amid the Meme Coin Boom
Pump.fun has gained significant traction during the recent meme coin fever thanks to its user-friendly interface and Solana's low transaction fees. The platform has seen a surge in the creation of political-themed cryptocurrencies, celebrity tokens, and other meme coins. However, data shows that only a small percentage of tokens launched on Pump.fun make it to Raydium. According to Dune Analytics, the success rate of Pump.fun tokens reaching Raydium has fluctuated between 1.21% and 1.41% since May, with an all-time high of 2.56% in February. Despite the low success rate, the platform's revenue has soared, generating $2 million in daily revenue last July, surpassing Ethereum's $1.91 million and becoming the largest revenue generator of any blockchain, according to DefiLlama.
The innovations introduced by Pump.fun aim to simplify the meme token creation process and attract more users. While only a small percentage of tokens reach Raydium, the platform continues to show significant revenue growth.
