crypto for all
Join
A
A

Crypto: PumpSwap Introduces a Game-Changing Revenue Model

19h05 ▪ 4 min read ▪ by Evans S.
Getting informed Decentralized Exchange (DEX)

Crypto is about to take a bold turn. PumpSwap, the Pump.Fun DEX on Solana, is establishing a revenue sharing model that could reshape the rules of the game. From now on, 50% of trading fees are returned to token creators. Even better: 0.05% of every swap is directly allocated to the developers. An unprecedented model, conducive to innovation… or abuse.

Illustration of a young designer in an orange hoodie exulting under a rain of golden tokens, surrounded by crypto symbols and flashes of light

In brief

  • PumpSwap returns 50% of trading fees to memecoin creators.
  • The model stimulates innovation but raises concerns about incentivized rug pulls.
  • Crypto becomes more accessible… at the cost of potential speculative excesses.

Crypto revolution and sharing mechanism

Firstly, the operation is clear. PumpSwap charges 0.25% fees on every transaction. Then, it distributes 0.2% to liquidity providers. Finally, it pays 0.05% to crypto creators. This last component constitutes the real novelty.

Indeed, on a volume of 11.2 billion dollars in April 2025, PumpSwap could have redistributed nearly 5.6 million dollars. In other words, a memecoin creator sees their efforts rewarded with each trade. This principle creates a virtuous circle, encouraging developers to innovate and launch new cryptos.

Furthermore, Pump.Fun has simplified users’ lives. Creating a memecoin now costs only a few cents in SOL, and migrating to PumpSwap is instant and free of extra charges. With one click, the project benefits from increased liquidity and visibility on the DEX. This ease invites rapid token proliferation… with its share of good ideas and risky projects.

In addition, the intuitive interface ensures massive adoption. Beginners can launch a crypto simply by uploading an image and choosing a ticker. Thus, PumpSwap extends its influence well beyond Crypto expert circles.

This democratization could catalyze a new wave of creations. However, it also raises questions about the quality of projects launched.

Controversies and challenges ahead

However, this model is already drawing sharp criticism. On X, many actors accuse PumpSwap of encouraging rug pulls. According to them, the automatic payment of 0.05% motivates developers to abandon their own project while continuing to earn income.

Moreover, this policy raises concerns within communities engaged in community takeovers. When a crypto is abandoned, members trying to revive the project see their profitability compromised. Indeed, they must deal with fees still paid to original creators. Thus, some communities fear losing any motivation to revive declining projects, due to a lack of fair incentives.

Finally, the debate intensifies over the system’s sustainability. For some, PumpSwap offers attractive passive income. For others, it is a trap. Bad practices could proliferate. In sum, this revenue sharing breaks traditional DEX codes. It places profitability at the heart of memecoin creation.

In conclusion, this PumpSwap initiative marks a turning point in the crypto world. It promises great opportunities. But it also calls for caution. Time will tell if this model will encourage the birth of sustainable projects… or only feed a new wave of rampant speculation, in the wake of a 15 trillion dollar ETF bubble poised to burst.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.



Join the program
A
A
Evans S. avatar
Evans S.

Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.