Pump.fun Replaces Cashback with Holder Rewards for Token Launches
Pump.fun Introduces Holder Rewards, Ends Cashback for New Tokens
Pump.fun has removed Cashback Mode as an option for new token launches. The platform now offers Holder Rewards instead, which automatically pay out trading fees to wallets that keep qualifying tokens.
Key Changes in the New System
- Cashback Mode is no longer available for new token launches on Pump.fun.
- Holder Rewards distribute fees pro rata to wallets holding more than $20 worth of an eligible token.
- Payments occur several times an hour and are automatic, unlike Cashback which required claims.
- Existing Cashback tokens must apply to switch to Holder Rewards; the change is not automatic.
- Once a token is converted to Holder Rewards, the decision cannot be reversed.
What Pump.fun Says About Rewards
Pump.fun described Holder Rewards with the phrase “longer hold times, higher ceilings.” However, its distribution post does not explain how holding time affects the rewards or ceilings. The post states that rewards are pro rata and larger balances earn more.
Confirmed Details on Fees and Distributions
Protocol fees remain the same regardless of token type. For Holder Rewards on SOL and USDC pairs, Pump.fun uses its existing tiered fee structure that declines as a token’s market cap rises. For Custom Pairs, creators set a flat Holder Rewards fee between 0.01% and 3%, which cannot be changed after selection. Rewards are sent in the token’s quote asset, such as SOL for SOL pairs.
Unanswered Questions on Reward Timing
Pump.fun has not clarified how holding time impacts rewards or ceilings, despite mentioning “longer hold times, higher ceilings.” This leaves uncertainty about whether longer holds increase reward amounts or limits.
Why This Matters for Token Holders
The shift from Cashback to Holder Rewards changes how token participants earn fees. Cashback redirected creator fees to traders, while Holder Rewards pay holders directly. This could influence holding patterns and token economics on the platform.
Next Steps for Existing Cashback Tokens
Existing Cashback and Creator Fee tokens do not switch automatically. Token teams and communities must apply through Pump.fun’s fee-redirection form. Custom Pair applicants need to specify their new flat fee. Pump.fun will review requests based on what it deems best for the token and community.