Pump.Fun, the Solana-based memecoin launchpad, has announced new details for its PUMP token, including allocation and updates to reward methods.
PUMP Token Allocation
The total maximum supply of the PUMP token is 1 trillion tokens. Allocation plans include: 33% for Initial Coin Offering (ICO), 24% for community and ecosystem initiatives, and 20% to the team. An additional 13% is designated for early supporters, 3% for live streaming initiatives, 2.6% for liquidity and exchanges, 2.4% allocated to the ecosystem fund to support partnerships, grants, and initiatives that promote growth, and 2% goes to the foundation for governance and operational support. This allocation structure aims for long-term growth and community support.
New Revenue Sharing Program
Two months ago, Pump.Fun introduced a new way to reward creators. 50% of all trading fees will go directly to token creators. This update has come amid increased competition in the memecoin space. Previously, creators could only earn by selling their tokens, leading to issues like rapid sell-offs when their tokens gained value. With the new model, creators will earn 0.05% of every SOL trade, provided their token is newly launched, still on the bonding curve, or has advanced to PumpSwap or Pump.Fun's recently launched exchange.
Pump.Fun Operations
Pump.Fun allows anyone to create a memecoin on its platform, with token prices rising as more people buy in. When the token value reaches about $100,000, it is 'graduated' and listed on Raydium, a decentralized exchange. At that point, Pump.Fun adds $17,000 in liquidity to maintain token stability. The platform burns liquidity provider tokens to prevent sudden crashes and rug-pull scams. In January, 71,725 tokens were launched on Pump.Fun in a single day.
Pump.Fun continues to evolve, implementing new programs and enhancing its ecosystem, allowing it to remain competitive in the rapidly changing world of cryptocurrencies.
