Pump.fun Replaces Cashback with Holder Rewards, Sets New Eligibility Rules

DeFi launch platform Pump.fun has discontinued the Cashback option for new token launches and introduced a new Holder Rewards model. The change shifts from a claim‑based rebate to automatic, pro‑rata payouts for wallets that retain qualifying tokens.

How Holder Rewards Work

Under the new system, a portion of the protocol fees assigned to a Holder Rewards token is sent to a Pump.fun distribution wallet and then distributed to eligible holders several times per hour. To qualify, a wallet must hold more than $20 worth of the token; larger balances receive a larger share of the payout.

Payout Currency

• Rewards are paid in the token’s quote asset (e.g., SOL for a SOL pair, PUMP for a PUMP pair).

Fee Structure

Protocol fees remain unchanged across token types. For SOL and USDC pairs, Pump.fun applies its existing tiered fee structure, which decreases as a token’s market capitalization grows. For custom pairs, creators set a flat Holder Rewards fee between 0.01% and 3%; this fee is immutable after selection.

Transition for Existing Cashback Tokens

Tokens that previously used Cashback do not switch automatically. Token teams must submit a fee‑redirection request via Pump.fun’s form, specifying any new flat fee for custom pairs. Pump.fun reserves the right to accept or reject applications based on criteria it deems appropriate for the token and its community.

Implications for New Token Creators

New creators can now choose only between a standard Creator Fee token and a Holder Rewards token. Once a token is designated as Holder Rewards, the decision cannot be reversed.