Pump.fun, a Solana-based memecoin launchpad, updated its fee distribution system on Sept. 12, introducing a new Holder Rewards token type and fully deprecating Cashback mode for all new launches.
Under Holder Rewards, trading fees route into a dedicated distribution wallet that pays token holders several times per hour, with amounts scaling based on both duration and quantity held. This replaces Cashback mode, which offered instant trading-linked rebates to active traders or redirected them to creators.
Pump.fun introduced Cashback in February 2026 to redirect creator fees toward high-volume traders. Community feedback, however, identified a structural flaw: many high-volume tokens lacked active development teams, meaning the mechanic still disproportionately benefited original creators over daily traders.
Token creators launching new projects now choose between two configurations: Creator Fee tokens, where fees flow to the project team, or Holder Rewards tokens, which redistribute fees directly to holders. No hybrid option exists for new launches.
Existing tokens launched under Cashback or Creator Fee structures can convert to Holder Rewards. Conversion is permanent, requires meeting platform-set criteria, and cannot be reversed. Existing Cashback tokens remain tradable under original rules, with users able to claim accrued rewards.
A minimum holding threshold of $20 is required to participate in Holder Rewards distributions.
