Pump.fun, a Solana-based memecoin launchpad, has introduced ‘Holder Rewards’ system. Parallel to this launch, the memecoin platform has removed Cashback mode. Pump.fun has introduced this change today via its official tweet. The update shifts the platform’s fee distribution model toward rewarding users who maintain longer-term positions in tokens. The model will likely encourage community participation and reduce the focus on short-term trading.
We just made two HUGE changes to Pumpfun
We’re INTRODUCING Holder Rewards and REMOVING Cashback mode
Now, Holder Reward tokens pay out rewards just by holding: for longer hold times, higher ceilings & communities that thrive pic.twitter.com/Chq1MhsZkD
— Pump.fun (@Pumpfun) September 12, 2026
Pump.fun Introduces Rewards for Token Holders
Under the new system, token creators can choose between a standard Creator Fee token and a Holder Rewards token when launching a project. For Holder Rewards tokens, trading fees that would otherwise be paid to creators are instead sent to a Pump.fun distribution wallet. Later, these fees are automatically distributed among eligible holders.
Holder Rewards are distributed on a pro-rata basis several times each hour. Users holding more than $20 worth of an eligible token can receive rewards. The system grants larger holder with a larger share of the distributions. The rewards are paid in the quote asset used by the trading pair. For example, tokens paired with $SOL will receive rewards in $SOL, while tokens paired with $PUMP will receive rewards in $PUMP.
Pump.fun said the new model is designed to encourage longer holding periods. Protocol fees remain unchanged across the different token types. $SOL and $USDC pairs continue to use Pump.fun’s existing tiered fee structure.
Cashback Mode Removed for New Token Launches
Pump.fun has also discontinued Cashback mode for new token launches. The previous system redirected creator fees to traders as cashback based on their trading volume. Existing Cashback and Creator Fee tokens can apply to transition to the Holder Rewards model. Once a token switches to Holder Rewards, it cannot return to its previous fee model.
For Custom Pairs, teams converting to Holder Rewards must select a permanent flat fee between 0.01% and 3%. Tokens paired with SOL or USDC will continue using the standard market-cap-based fee structure. Existing Cashback tokens will continue operating and users will still be able to claim previously accrued rewards.