Pump.fun Drops Cashback for New Launches, Adds Holder Rewards

Pump.fun has removed Cashback Mode as an option for new token launches and introduced Holder Rewards, replacing a trading-linked rebate in the creation flow with automatic payouts to wallets that keep qualifying tokens.

Under the new system, fees assigned to a Holder Rewards token go to a Pump.fun distribution wallet and are sent pro rata several times an hour. Wallets must hold more than $20 worth of the token to qualify, and larger balances receive a larger share.

Cashback rewards had to be claimed through Pump.fun, its app or Terminal. Holder Rewards payments are automatic and arrive in the token’s quote asset — $SOL for a $SOL pair, for example, or $PUMP for a $PUMP pair.

Pump.fun advertised the product with the phrase “longer hold times, higher ceilings.” Its distribution post says rewards are pro rata and that larger token balances earn more; it does not explain there how holding time affects rewards or ceilings.

The platform said its protocol fees remain the same regardless of token type. Holder Rewards fees on $SOL and USDC pairs use Pump.fun’s existing tiered structure, which declines as a token’s market capitalization rises. For Custom Pairs, creators select a flat Holder Rewards fee between 0.01% and 3%; once chosen, it cannot be changed.

Existing Cashback Coins Must Opt In

Cashback had redirected creator fees to traders. In a February post, Pump.fun described that choice as permanent, but the new policy creates a route out.

Existing Cashback and Creator Fee tokens do not switch automatically. Token teams and communities may apply through Pump.fun’s fee-redirection form, and Custom Pair applicants must specify their new flat fee. Pump.fun said it will accept or reject requests using information it considers best for the token and its community.

New coin creators can now choose only between a standard Creator Fee token and a Holder Rewards token. Once a coin is converted to Holder Rewards, the decision cannot be reversed.