Pump.fun Launches Creator Fees for Community Takeovers (CTO): How it Works

Pump.fun, popular for its role in the creation of memecoins on the Solana network, has introduced a new mechanism called Creator Fees for Community Takeovers (CTO). This development aims to address situations where a project’s original developer has stepped away, leaving the community to seek new leadership. 

The process allows eligible communities to redirect creator fees to designated wallet addresses, offering a potential lifeline for projects in transition. Here’s a detailed look at how this works. 

Eligibility and Process for Claiming CTO Creator Fees

The CTO initiative applies to projects still on the bonding curve or those that have migrated to PumpSwap. However, coins that moved to Raydium before March 20, 2025, are excluded due to a lack of control over those smart contracts. Communities must demonstrate a clear need for a takeover, with indisputable evidence that the project would falter without new leadership. This could include sustained community activity or contributions from a specific individual or group.

The process hinges on avoiding disputes. If multiple parties claim leadership or if the situation lacks clarity, the fees will not be redirected. Pump.fun has stated it will not mediate conflicts, ensuring the decision remains straightforward. To apply, communities must complete a form available at https://forms.gle/BbFdFBZsyBhpXRR87. A team member will then contact applicants via [email protected] with further details or the application’s outcome. Importantly, only emails from this address are valid; unsolicited messages to this email can jeopardize approval chances. Future communication methods may be announced via the official X account (@pumpdotfun).

What Defines a Valid Community Takeover?

A valid CTO requires proof that the community depends on the proposed leader or group. This might involve records of active management, such as organizing trading efforts or maintaining project visibility. The platform emphasizes that fake takeovers will not be tolerated, aiming to protect the integrity of the process. This approach ensures resources flow to those genuinely sustaining the project, rather than opportunistic claimants.

The Pump ICO Launch

On July 12, Pump.fun launched its initial coin offering (ICO), raising nearly $600 million in under 12 minutes. The event marked a significant moment for the platform, drawing attention from the crypto community. However, the token’s performance since it went live on July 14 has been unconvincing for investors and ICO participants.

As of writing, the PUMP token trades at $0.0025, reflecting a 54% drop from its initial $0.0054, according to data from CoinGecko. The market cap stands at approximately $898 million, with a 24-hour trading volume of $555 million. Over the past two weeks, the token has experienced volatility, with a notable decline of about 48%, though daily trading activity remains significant.

The project initially confirmed a $PUMP token airdrop will follow their ICO, with 24% of the token supply allocated for community and ecosystem initiatives, including airdrops, as stated in their official announcement. However, on July 23, co-founder Alon Cohen clarified on the Threadguy podcast that no airdrop would occur in the "immediate future," leading to a 15-18% drop in the $PUMP token price as market expectations adjusted. Despite earlier hints in October 2024 during an X Spaces event about rewarding early users, no specific airdrop criteria or timeline were confirmed, and the focus shifted to the ICO and ecosystem development. Pump.fun has also initiated a buyback program, using 100% of daily revenue to repurchase PUMP tokens, which briefly lifted the price to $0.003 on July 26 before it settled back.

In the last two weeks, Pump.fun has focused on enhancing its ecosystem. The CTO feature’s launch is part of a broader effort to empower communities, alongside the buyback initiative aimed at stabilizing the token. The platform’s treasury, reported at $1.8 billion, could support future developments, though specific plans remain undisclosed. These moves suggest an attempt to adapt to current market conditions and maintain project momentum.

Final Thoughts…

The CTO mechanism offers a practical solution for abandoned projects, allowing active communities to sustain themselves financially. For investors and participants, understanding eligibility and following the application process carefully is crucial. 

This development provides a model for other platforms, showing how community-driven governance can emerge in decentralized ecosystems. The next steps for Pump.fun, including potential airdrop resolutions, will offer further insight into its long-term strategy.

Sources:

• Official Pump.fun X Account
• PUMP Token Price and Market Data (CoinGecko) 
• CTO Application Form
• Pump.fun Treasury (Milk Road Analysis)