Pump.fun's New Feature Cuts Out Token Deployers Completely — Here's How It Works

Pump.fun has introduced a new feature called Cashback Coins, giving memecoin creators on its Solana-based launchpad a binary choice: direct all creator fees back to traders, or keep the traditional creator fee structure. The decision must be made before a token launches and cannot be changed afterward. The feature is live now on both the Pump.fun app and website within the coin creation flow.

The update targets a specific problem the team identified in its own platform: tokens that succeed without any meaningful team or project lead behind them, yet still funnel fees to whoever deployed the contract.

Why Did Pump.fun Change Its Fee Structure?

Pump.fun's own statement on X put it plainly: 

"Creator Fees are undeniably a net positive for helping teams, creators and founders grow and succeed. However, many tokens achieve success without a team or project lead, thereby disproportionately rewarding token deployers who don't deserve the fees."

The Cashback Coins feature is a direct response to that imbalance. Rather than Pump.fun deciding which projects deserve fees, the platform is putting that decision in the hands of traders. As the team wrote, traders can now "choose to engage with tokens they feel the most aligned with, ultimately letting the market decide who gets rewarded and where the bar is set."

This is a meaningful shift in how memecoin launchpads typically operate, where fee structures are usually set by the platform and applied uniformly across all tokens regardless of the team behind them.

How Do Cashback Coins Actually Work?

Here is the core mechanic: when a creator sets up a new coin on Pump.fun, they must choose one of two options before launch.

• Cashback Coins: All creator fees are redirected to traders. This cannot be reversed after launch. Community takeovers (CTOs) are not supported on these tokens, meaning no new team can step in and claim control or fees later.
• Creator Fee Coins: The traditional model where the deployer receives creator fees. This is also locked permanently once the token goes live.

Both choices are irreversible. Neither token type can be converted to the other after launch. Importantly, this only applies to new coins. Tokens already deployed on the platform are not affected.

To claim cashback rewards, the process is as follows:

• Download the Pump.fun mobile app
• Create an account or import an existing wallet
• Go to your profile
• Navigate to the "Rewards" section and claim

Pump.fun's Broader Push to Clean Up Its Reputation

The recent update is the latest in a series of product changes Pump.fun has made in response to sustained criticism that the platform functions as an extractive tool that benefits deployers at the expense of retail traders.

The numbers behind that criticism are hard to ignore. A January 2025 report from CoinGecko found that 11.6 million cryptocurrency projects failed in 2025, the highest single-year failure count on record. Those failures represent 86.3% of all project closures between 2021 and 2025. Low-effort memecoins launched on platforms like Pump.fun made up a significant portion of new listings during that period.

Pump.fun's co-founder Alon acknowledged earlier this year that the platform's first iteration of a dynamic fee system was producing the wrong outcomes, specifically encouraging the creation of low-risk tokens over genuine trading activity, which eroded long-term liquidity. That system was replaced with a more market-driven model.

In January, the platform also rolled out fee sharing and controls, allowing creators to split fees across up to 10 wallets, with transferable ownership and improved tools for team and CTO administrators. On the product side, Pump.fun has added a movers feed, one-click trading, and price alerts to improve usability on mobile.

Conclusion

Pump.fun's Cashback Coins introduce a permanent, creator-set choice at launch: fees go to traders or to the deployer, and that decision cannot be changed afterward. CTOs are blocked on Cashback Coins, and the feature only applies to new tokens.

The update is part of a wider effort to address legitimate criticism. With 11.6 million crypto projects failing in 2025, many of them low-effort memecoins, Pump.fun has a credibility problem it is actively trying to fix. Cashback Coins, fee-sharing controls, and mobile improvements are all steps in that direction. Whether traders and creators adopt the feature at scale will determine how much it actually changes things on the platform.

Resources

1. Pumpfun on X: Post on Feb. 17

2. Report by The Defiant: Pumpfun Rolls Out 'Cashback Coins'

3. Report by CoinDesk: More than half of all crypto tokens have failed — and most died in 2025

4. Report by Finance Feeds: Pump.fun Introduces Fee Sharing as It Resets Incentives for 2026