Pump.fun, the popular meme coin launch platform, has rolled out a significant new feature called Cashback Coins. This initiative directly addresses widespread criticism that some token deployers on the platform collect creator fees without contributing long-term value to their projects.
The new mechanism requires coin creators to make a permanent choice before launch: either opt for traditional Creator Fees or select the new Cashback Coins model. If Cashback Coins is chosen, all creator fees are directed to the token's traders and holders instead of the deployer. Once a token is launched with this setting, the decision is locked forever and cannot be changed. Notably, Cashback Coins will not support CTOs (Creator Token Ownership), but will perpetually reward traders and holders.
In a post announcing the feature, Pump.fun stated that while Creator Fees are a net positive for helping teams and founders grow, "many tokens achieve success without a team or project lead, thereby disproportionately rewarding token deployers who don’t deserve the fees." The platform positions this change as letting "the market decide who gets rewarded and where the bar is set." The feature applies only to new coins, not to already deployed projects.
This launch is part of Pump.fun's broader effort to improve its reputation amid concerns about being an "extractive machine." A January 2026 report from Coingecko highlighted that 11.6 million cryptocurrency projects failed in 2025, the highest number recorded in a single year and accounting for 86.3% of all project closures between 2021 and 2025. The report linked the drop in token survivability to overall market volatility and the dominance of low-effort tokens launched on platforms like Pump.fun.
Pump.fun's co-founder, Alon, had previously admitted that an earlier iteration of a dynamic fee system was "doing more harm than good" by encouraging the creation of low-risk tokens over trading, posing a risk to long-term liquidity. The Cashback Coins feature follows other recent platform updates, including fee sharing controls and mobile UX improvements. The platform has also shifted focus away from teasing a $PUMP token airdrop, instead positioning new features and buybacks as the primary reward methods for its ecosystem.
Concurrently, the price of Pump.fun's native token, PUMP, is experiencing technical compression. At press time, PUMP was trading at $0.002162, down 3.2% in 24 hours but up 13% on the week. The token is compressing below a descending trendline, with spot volume surging 56% to $110 million in 24 hours. Analysts suggest the new Cashback Coins model could influence short-term trading behavior by tying rewards directly to trading activity, potentially encouraging higher turnover and speculation, which may amplify volatility.
