PumpSwap, a decentralized exchange by Pump.fun, made an announcement today stating that they will allocate 50% of their trading revenue to the creators of meme coins. This new feature, which was launched on May 12, enables token creators to earn 0.05% of the trading volume their coins generate.

The platform, Pump.fun, offers users the opportunity to claim rewards directly by linking the wallet used to create their coins. These rewards are distributed in SOL and are redeemable at any time. This move positions PumpSwap as a highly creator-friendly platform in the realm of decentralized finance and creates competition against established decentralized exchanges on the Solana network, like Raydium.

According to CoinGecko data, Raydium currently handles over $517 million in daily trading volume, while PumpSwap has reached $80 million in daily volume just two months post-launch. Pump.fun aims to expand its market share in the competitive Solana ecosystem through this revenue-sharing initiative, which could also foster stronger loyalty from developers and support higher-quality token launches.

With an increasing number of creators seeking passive income from trading activities, PumpSwap's model might prompt other platforms to introduce similar rewards. Pump.fun itself has experienced significant growth in 2025, generating around $296 million in transaction fees thus far, surpassing Ethereum's $249 million over the same period. The platform's revenue peaked briefly at $14 million in a single day before normalizing, with daily revenues between $1 million and $2 million recorded in May following a slowdown in March.

Pump.fun introduced PumpSwap to facilitate the trading of new tokens, reducing migration costs to external DEXs like Raydium. This allowed for immediate listing once a token finished its bonding curve sale. As the Solana meme coin space evolves, PumpSwap's aggressive creator incentives could influence trading behaviors and intensify competition in the sector.