Pumpfun Removes Cashback And Introduces Holder Rewards
Pumpfun has replaced its Cashback Mode with a new Holder Rewards system, redirecting protocol fees to eligible token holders multiple times per hour on Solana.
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A New Fee Distribution Model
Pumpfun has overhauled its fee structure, removing Cashback Mode and replacing it with a new Holder Rewards system. The platform now distributes trading fees pro-rata to eligible holders several times per hour. The change marks a meaningful shift in how value flows through the Solana-based memecoin launchpad.
Cashback Mode was introduced in February 2026 as an attempt to redirect creator fees away from developers and toward the traders actually moving volume. Over time, however, many of the highest-volume tokens on the platform no longer had active development teams, meaning the original Cashback mechanic still disproportionately benefited creators relative to the traders engaging with the token daily. Holder Rewards is the platform's direct response to that structural flaw.
How Holder Rewards Works
Token creators launching new projects now choose between two configurations: a standard Creator Fee token, where fees flow to the project team, or a Holder Rewards token, where those same fees get redistributed to holders on an ongoing basis. The more tokens a holder carries, the more they earn, and anyone holding over $20 worth of a token is eligible.
Existing Cashback and Creator Fee tokens can apply to switch through a fee redirection application form. However, the decision is permanent. The change is irreversible once made. Rewards are paid out in the token's quote asset, which includes $SOL or $PUMP depending on the pairing.
For $PUMP-quoted pairs, rewards are distributed in $PUMP itself, adding a direct demand channel tied to platform activity. Existing Cashback tokens will continue operating and users will still be able to claim previously accrued rewards.
The update is part of a broader push by Pumpfun to encourage longer holding periods and reduce short-term speculation on its platform.
Sources:
Crypto Briefing: Pumpfun introduces Holder Rewards and sunsets Cashback mode
TradingView: Pumpfun Holder Rewards launch replaces Cashback mode
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Soumen DattaSoumen has been a crypto researcher since 2020 and holds a master’s in Physics. His writing and research has been published by publications such as CryptoSlate and DailyCoin, as well as BSCN. His areas of focus include Bitcoin, DeFi, and high-potential altcoins like Ethereum, Solana, XRP, and Chainlink. He combines analytical depth with journalistic clarity to deliver insights for both newcomers and seasoned crypto readers.