Pump.fun is testing a new trading volume-based rewards system distributing up to 1 billion PUMP tokens daily to re-engage users and compete with LetsBONK, which currently leads Solana launchpads in market share and earnings.
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Pump.fun aims to boost user activity through a dynamic PUMP token rewards program linked to trading volume.
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LetsBONK has surpassed Pump.fun with $1.78 million in daily earnings and a dominant share of high-performing token launches.
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Dumpster DAO highlights that the 1 billion daily token distribution is likely a placeholder, not a sustainable long-term figure.
Pump.fun tests a 1 billion daily PUMP token rewards system to regain market share from LetsBONK, now Solana’s top launchpad. Discover the latest updates and competitive insights.
How Is Pump.fun Implementing Its New Trading Volume Rewards System?
Pump.fun is actively developing a rewards mechanism that allocates native PUMP tokens based on user trading volume, aiming to increase platform engagement. The updated Software Development Kit (SDK) tracks 30-day Solana (SOL) volume and allows dynamic adjustment of daily rewards through new admin controls. Early test versions suggest a distribution of up to 1 billion PUMP tokens daily, representing 3% of the total supply monthly, though this figure is likely provisional.
What Are the Technical Features Behind Pump.fun’s Rewards Program?
The revised SDK introduces tracking for user trading volume and integrates bonding curve activity into the rewards calculation. This approach enables flexible reward allocation tied directly to platform usage metrics. Dumpster DAO notes that the bonding curve program’s Interface Definition Language (IDL) updates hint at expanded reward sources, enhancing the incentive structure for token creators and traders.
Pump.Fun’s Incentive Program Tokens. Source: Dumpster DAO
Why Has LetsBONK Surged Past Pump.fun as Solana’s Leading Token Launchpad?
LetsBONK’s rapid rise has challenged Pump.fun’s dominance, capturing between 37% and 55% of daily active token creators, a significant jump from its previous 3%-10% share. This growth has translated into superior revenue performance, with LetsBONK achieving a peak daily income of $1.78 million as of July 21. The platform’s success in hosting high-value token launches—64% of tokens surpassing $500,000 market cap last week—further solidifies its market leadership.
How Has Market Share Shifted Between Pump.fun and LetsBONK?
Market data shows Pump.fun’s creator share dropped below 50% on July 7, coinciding with LetsBONK’s rise above 49.6%. This shift disproved earlier expectations that Pump.fun would quickly reclaim its position. LetsBONK’s consistent market share growth and revenue gains reflect strong user adoption and platform momentum in the competitive Solana launchpad landscape.
Token Graduations on LetsBONK and Pump.fun. Source: Solana Floor
What Impact Did the Rewards Announcement Have on PUMP Token Price?
Following the disclosure of the rewards system, PUMP token price surged 5% within an hour, reaching $0.002875. This rally provided temporary relief after a significant decline exceeding 47% from its all-time high of $0.066. The price movement indicates positive market reception to the proposed incentives, though sustainability remains uncertain.
What Are Analysts Saying About the Sustainability of Pump.fun’s Rewards?
Experts caution that distributing 3% of the total token supply monthly is likely unsustainable. Dumpster DAO emphasizes that the 1 billion daily token figure is a test parameter rather than a finalized plan. The platform is expected to refine its rewards strategy to balance user incentives with long-term tokenomics health.
Frequently Asked Questions
How does Pump.fun calculate rewards for users?
Pump.fun uses a 30-day Solana volume window to track trading activity and dynamically allocates PUMP token rewards based on this data, including bonding curve interactions.
Why is LetsBONK currently leading Solana launchpads?
LetsBONK leads due to its rapid growth in daily active token creators, higher revenue generation, and a strong record of successful token launches, making it the preferred platform for many users.
Key Takeaways
- Pump.fun is innovating with a volume-based rewards system: This aims to boost user engagement and token utility.
- LetsBONK leads Solana launchpads: It commands the largest market share and daily earnings.
- Tokenomics sustainability is under review: The proposed 1 billion daily token reward is likely a test figure, requiring adjustment.
Conclusion
Pump.fun’s introduction of a trading volume-based rewards program represents a strategic move to regain market share from the rapidly growing LetsBONK platform. While LetsBONK currently dominates Solana launchpads in revenue and token launches, Pump.fun’s evolving incentives could reshape competition. Monitoring these developments will be crucial for stakeholders seeking opportunities in Solana’s token launch ecosystem.
