Pump.fun: A Memecoin Launchpad

Solana-based memecoin launchpad Pump.fun is eliminating token deployment costs and rewarding token creators with 0.5 SOL ($80) when their tokens cross the bonding curve.

The platform will now require the first buyer of a memecoin to pay the token creation fee instead of the creator, which was 0.02 SOL ($3). This change allows individuals to create their own coins without needing to purchase any of their supply, according to Pump.fun’s announcement on X.

Memecoin creators will receive the 0.5 SOL reward regardless of whether they held the token they created. The source of this reward is the pump.fun migration fee, reportedly set at 1.5 SOL.

Pump.fun gained popularity during the recent meme coin trend, enabling numerous political-themed cryptocurrencies, celebrity tokens, and other meme tokens thanks to its user-friendliness and Solana’s low transaction fees. When a token reaches a specific market cap, a portion of its liquidity is shifted to the Raydium decentralized exchange.

Using a bonding curve model, the price of a coin rises as more people buy it. A coin starts at a base price, and as purchases increase, the price increments predictably. This mechanism ensures continual market access for the coin, providing liquidity.

Despite its popularity, data from Dune Analytics indicates that only about 1.4% of tokens launched on the platform have successfully reached Raydium.

As a vital launchpad for meme tokens, Pump.fun achieved a record daily revenue of $2.31 million on July 30, according to The Block‘s data dashboard.