pump.fun Launches Holder Rewards, Discontinues Cashback for Tokens
- On Sept. 12, pump.fun introduced Holder Rewards and ended the Cashback mode for new token launches.
- Creators can now choose between a standard model with a Creator Fee or the new rewards system that incentivizes long-term holding.
- Eligible holders must maintain over $20 worth of a token to qualify for automatic, pro-rata payouts several times per hour.
- The rewards are distributed in the trading pair’s quote token, such as Solana (SOL) or PUMP.
- Existing tokens using Cashback can apply to switch to Holder Rewards but cannot revert back after switching.
The introduction of Holder Rewards aims to foster community growth by encouraging users to hold their tokens longer rather than cashing out quickly. This shift is significant as it changes how creators structure their token launches and engage with their communities.
With this change, pump.fun emphasizes long-term engagement, offering automatic payouts based on user holdings in each trading pair’s quote token.(Source)
