Pump.fun Ditches Cashback for Holder Rewards on New Launches

Pump.fun has made some significant changes to its protocol, including removing Cashback Mode as an option for new token launches and introducing Holder Rewards. This new system replaces a trading-linked rebate with automatic payouts to wallets that hold qualifying tokens.

Under the old Cashback Mode, wallets holding more than $20 of an eligible token received trading-fee payouts several times an hour. Existing Cashback coins must apply to switch to Holder Rewards, but this is not an automatic process and requires a request through Pump.fun's fee-redirection form.

The new Holder Rewards system automatically pays out fees assigned to a token in the creator's distribution wallet, which are then sent pro rata several times an hour. The rewards go directly into the token's quote asset, such as SOL for a SOL pair or PUMP for a PUMP pair. Pump.fun emphasizes that its protocol fees remain the same regardless of token type.

Pump.fun has also introduced a tiered structure for Holder Rewards fees on SOL and USDC pairs, which declines as a token's market capitalization rises. For Custom Pairs, creators can select a flat Holder Rewards fee between 0.01% and 3%, but this cannot be changed once chosen.