Memecoin launch platform pump.fun announced on Sept. 12, 2026, that it had introduced Holder Rewards and discontinued Cashback mode for new token launches. The changes matter because creators must now choose between a standard token with a Creator Fee and a token that distributes rewards to holders.

pump.fun said the Holder Rewards model is intended to encourage users to hold tokens for longer and support the growth of their communities. Cashback mode is no longer available when launching new tokens.

How Holder Rewards work

For tokens using Holder Rewards, fees are routed to a dedicated pump.fun distribution wallet. The platform automatically distributes rewards to holders several times per hour on a pro-rata basis, meaning users with more tokens in their balances receive a larger share.

Users must hold more than $20 worth of a token to qualify for rewards. Payouts are made in the trading pair’s quote token: rewards for a pair quoted in SOL are paid in Solana, while rewards for a pair quoted in PUMP are paid in PUMP.

Switching existing tokens

Teams and communities behind tokens already launched with Cashback or a Creator Fee can apply to move to Holder Rewards. pump.fun said it will decide on applications using objective information and the potential benefit to the token and its community.

A token cannot return to its previous model after switching to Holder Rewards.

For Custom Pairs, a fixed fee of between 0.01% and 3% must be set during the transition. For pairs using SOL or USDC, pump.fun applies a standard tiered fee structure based on the token’s market capitalization.

Fee structure

pump.fun said protocol fees remain unchanged across token types. For SOL/USDC pairs, the fee declines as the token’s market capitalization increases.

For Custom Pairs, creators can set a fixed fee ranging from 0.01% to 3%. The fee cannot be changed once it has been set.

The launch follows pump.fun’s earlier addition of tokenized stocks using its Custom Pairs function.

Source: Incrypted