- Solana-based token creation platform Pumpfun has announced new incentives for project developers.
- Developers moving their projects to Raydium (DEX) will receive 0.5 SOL as a reward.
- Pumpfun has also introduced a zero initial launch fee for new tokens, aiming to encourage more creators.
Pumpfun offers incentives for project developers to move to Raydium DEX on Solana blockchain.
New Incentives for Developers Moving to Raydium DEX
Pumpfun, a platform for creating Solana tokens, announced that developers migrating their projects to the decentralized exchange Raydium will be rewarded with 0.5 SOL, approximately 80 USD. This reward is contingent on the successful completion of the bonding curve process and the launch of the token on Raydium DEX.
Change in Fee Structure to Attract More Developers
In an effort to attract more developers, Pumpfun has revised its fee structure. Moving away from a $2 token launch fee, the platform now allows the first buyer of a token to cover this fee, effectively making token creation free for developers. This change stems from data revealing that 98.6% of tokens launched on Pumpfun failed to complete the bonding curve and thus could not be launched on Raydium.
The Bonding Curve Model on Solana Network
The bonding curve used by Pumpfun provides guaranteed liquidity for new tokens launched within the Solana blockchain by allocating a small amount from each token purchase to a bonding curve pool. This ensures that once a token reaches a market capitalization of $63,000, it can be launched on Raydium DEX with assured liquidity. This mechanism minimizes the likelihood of the token becoming entirely illiquid, safeguarding investors’ ability to sell even if prices fall significantly.
Conclusion
Pumpfun’s new incentive scheme aims to boost activity on the Solana network by making it easier and more rewarding for developers to launch their projects on Raydium DEX. By reducing fees and offering SOL rewards, the platform seeks to foster a more active and liquid token ecosystem. However, potential developers and investors should conduct their own thorough research before engaging with new token projects.
