Pump.fun’s PUMP token surged over 10% today after a new update announcement. “Project Ascend” hopes to boost the launchpad’s entire ecosystem with a reimagined creator fee system.
Although the platform attempted to roll out creator fees a few months ago, the program had major setbacks, which Project Ascend is trying to address. The main change revolves around a tiered system linked to token market caps.
Sponsored
Sponsored
Pump.Fun is Upgrading the PUMP Ecosystem
Pump.fun’s PUMP token faced major setbacks throughout much of August, but it has seen a major rebound in the last few days.
Several factors, like user activity on Pump.fun, have fueled this recovery, but a fresh update announcement could push it even higher.
Pump.fun (PUMP) Price Performance. Source: CoinGeckoSponsored
Sponsored
According to a recent social media post, a series of updates is coming for the whole ecosystem. “Project Ascend” will focus on creator fees, incentivizing users to launch their own meme coins.
Although the platform tried a similar plan a few months ago, it received heavy community criticism. Now, however, Pump.fun is planning to update this program with a tiered system.
The Inverse Tier Approach
Dynamic Fees V1 will yield progressively lower rewards to creators as their launched tokens get a higher market cap, encouraging smaller products to stand out. The platform hopes to encourage an “exponential increase in talent onboarding,” boosting the whole ecosystem.
This structure applies to all PumpSwap tokens, while protocol and LP fee allocations remain unchanged. Pump.fun’s update also includes a community application process to report projects and cancel creator fees, hopefully deterring bad actors.
Still, although PUMP responded well to the announcement, the community also voiced some concerns. Pump. Fun’s promised airdrop still hasn’t happened, and the Project Ascend update sets very ambitious goals.
Sponsored
Sponsored
How can this tiered fee system be fiscally sustainable, especially when meme coin markets are experiencing a decline?
In short, there are many questions about Pump.fun’s new updates. The announcement promises to “100x the Pump.fun ecosystem” with dynamic fees for token creators, but the platform’s scam token problem is substantial.
This upgrade might make the issue even worse, like we’ve seen in similar creator incentivization plans.
If this all works as advertised, though, it could trigger a flurry of activity. Project Ascend could mark a new era for Pump.fun token launches and user trade volumes. Most importantly, it could largely incentivize more trading on the launchpad’s decentrazlied exchange, Pumpswap.
Source: https://beincrypto.com/pump-fun-ecosystem-update-creator-fees/
