Hyperstition #9 — May 13, 2025
Pump.fun launches fee sharing, US recession odds flip, and more.
Pump.fun rolls out fee sharing for coin creators
Coin creators earn a 0.05% fee every time their token is traded.
Total trading fees on PumpSwap rise to 0.3%.
Pump.fun hopes creator fee sharing attracts serious developers.
Pump.fun, Solana’s most popular token launchpad, has started sharing trading fee income with coin creators, it said in a May 12 X post.
Beginning Monday, each creator will earn a 0.05% fee every time his or her coin is traded on PumpSwap, the in-house decentralized exchange (DEX) Pump.fun launched in March.
“[W]ith this update, creators no longer have to solely rely on selling coins to participate in the upside of their ideas,” Alon, Pump.fun’s co-founder, said in a May 12 X post.
“[T]hey continue earning after the initial hype and win when the coin finds longevity,” he said.
Fee distribution
The 0.05% creator fee is in addition to PumpSwap’s existing 0.25% fee, taking the total fee for swaps on the platform to 0.3%, a person familiar with the matter told Hyperstition.
The remaining fees include a 0.2% fee paid to liquidity providers and a 0.05% fee collected by Pump.fun itself.
Creators whose coins are still bonding will earn fees sourced from the Pump.fun launchpad instead of the PumpSwap DEX, the person familiar with the matter told Hyperstition.
According to Pump.fun, its new fee sharing model “makes pump fun the most rewarding launchpad for creators.”
However, Pump.fun’s model has drawn criticism for increasing overall trading fees.
“This is a tax on traders who now have less incentive to trade pumpfun tokens,” Nick O’Neill, co-founder of BoDoggosENT, said in a May 12 X post.
Competitive pressures
The fee sharing rollout comes as competing token launchpads eat into Pump.fun’s longstanding dominance of Solana’s memecoin ecosystem.
As of May 12, Pump.fun hosted approximately 76% of all coin creations, compared to more than 99% as recently as April, according to data from Dune Analytics.
Meanwhile, two newer launchpads — Raydium’s LaunchLab and Boop — command approximately 23% and 1% of market share, respectively, the data shows.
Practically every upstart launchpad touts some sort of revenue sharing mechanism for coin creators.
For example, creators using Raydium’s LaunchLab earn 10% of trading fees, which can range from 0.25% to as high as 4% per swap, according to Raydium’s website and documentation.
In a May 12 X post, Alon said he expects creator fee sharing to attract more serious developers to launchpads such as Pump.fun.
“[I]f we normalize backing the dev as long as they remain committed, totally new markets will emerge that are unconstrained by the assumption that the dev is working against holders,” Alon said.
In Other News…
Kalshi recession odd drop below 50% for first time since Trump tariffs
Bettors no longer believe the US is most likely headed for a recession, according to prediction platform Kalshi. This is the first time Kalshi bettors took such an optimistic view of the American economy since US President Donald Trump announced plans for sweeping US import tariffs in early April. As of May 12, Kalshi’s recession odds are approximately 40%, down from a high of more than 70% at the start of the month. Meanwhile, Kalshi bettors are now projecting that the US economy will grow 2% in the second quarter of 2025 after (accurately) anticipating negative GDP growth in Q1.
