Pump.fun, a Solana-based Mimecoin launchpad, eliminates token distribution fees and rewards token creators with 0.5 SOL ($80) when the token crosses the bonding curve.
The platform will now allow the first purchaser of Mimecoin to pay the token creation fee instead of the creator paying a fee of 0.02 SOL ($3). “This opens up a use case where someone can create coins without having to purchase any supply at all.” Pump.fun Wrote About X.
Memecoin creators receive a 0.5 SOL reward, regardless of whether they hold the tokens they created. The reward amount is funded by pump.fun migration fees, which are set at 1.5 SOL.
Pump.fun has gained popularity amid the recent meme coin craze. The ease of use and low transaction fees of Solana have led to the creation of numerous politically themed cryptocurrencies, celebrity tokens, and other meme tokens. When a token reaches a certain market cap, a portion of its liquidity is moved to the Raydium decentralized exchange.
Pump.Fun uses a bonding curve model, which means that the more people buy a coin, the higher its price goes. The coin starts at a base price. As more people buy the coin, the price jumps to the next level. This makes the price increase more predictable for buyers and sellers. As with traditional bonding curves, there is always a market for the coin, ensuring liquidity.
According to data from Dune Analytics, only about 1.4% of tokens distributed on the platform successfully reached Raydium.
Meanwhile, Pump.fun remains an active launch pad for meme tokens, recording its highest ever daily revenue of $2.31 million on July 30. Data Dashboard for Blocks.
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About the Author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He was previously a reporter at Forkast.News, where he actively covered the downfalls of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong, and China. He holds a Bachelor of Arts in Journalism and Business Marketing from the University of Hong Kong.