The Pump platform.fun abolished the commission for the creation of meme tokens and promised a reward of 0.5 SOL (~$80) for completing the "linking curve".
Today we’re introducing 2 HUGE changes to the pump fun mechanism (in beta)
1) Coin creation is FREE
2) Coin creators receive 0.5 SOL (~$80) when their coin completes its bonding curve
How does it work?
1) Instead of the creator having to pay ~$2 for coin creation, this cost… pic.twitter.com/Zp7DCJQoya
"Instead of paying ~$2 to create a coin, now the first buyer pays this cost. This opens up the possibility of issuing a token without buying its offer," the team explained.
The "binding curve" is a way to ensure guaranteed liquidity for new tokens after they hit the Raydium trading platform on the Solana blockchain. This model holds a small amount from each purchase of an asset and distributes it along the liquidity curve.
The mechanism of the "binding curve". Data: yos.io .In the case of Pump.fun as soon as the memcoin reaches a market capitalization of $69,000, the "binding curve" ends. This approach ensures that the asset does not become completely illiquid.
According to the representatives of the platform, a reward of 0.5 SOL is allocated from the "Pump migration fee.fun", which is 1.5 SOL.
"The reward also encourages all developers to bring their coin up to 100%. [...] When a coin is created, it does not fit into the blockchain until someone buys it. That's why sometimes there may be a difference between the startup time in the Pump interface.fun and the main network," the publication says.
The meme factory update appeared after the publication of disappointing launch results on the platform. Only 1.4% were created using Pump.fun coins end up on Raydium.
Although the reward will be an incentive for the creators, it may not be enough to stop fraud on the platform. Many market participants misunderstood the idea of an update.
Well it was fun while it last lasted.
I don't see how this system doesn't get exploited by people buying up their own tokens a 100 times over to make 50 sol
"I do not see a situation in which this system will not be exploited by people buying their own tokens 100 times to earn 50 SOL," anon_rip wrote.
A user under the nickname Ape stated that the commission for the issue of the coin "kept the Pump site.fun is afloat." Now, 50,000 new tokens will appear per day instead of 10,000, KashKysh suggested.
Recall that on July 1, the daily volume of Pump revenues.fun reached $1.99 million, ahead of Ethereum.
Earlier, the DEX Screener cryptocurrency data service also launched a competing platform for creating meme coins called Moonshot on Solana.