Pumpfun Removes Cashback Mode as Holder Rewards System Launches
Under the new model, protocol fees are transferred to a distribution wallet, with rewards allocated several times each hour based on the balance held by each eligible participant. The change gives token creators a new option for distributing fees through the platform.
Pumpfun Shifts From Cashback to Holder Rewards
The Holder Rewards system replaces Cashback Mode as Pumpfun's latest approach to distributing protocol fees.
According to BSCN, rewards are calculated based on each eligible holder's balance and distributed several times per hour. The mechanism uses a dedicated distribution wallet to handle the allocation of protocol fees.
The new system applies at the token level, allowing creators to select Holder Rewards when launching new tokens on the platform. This gives creators the ability to incorporate the rewards mechanism into a token from the point of launch.
The change also applies to certain tokens that already exist on Pumpfun. Existing eligible tokens can apply to switch to the Holder Rewards system rather than being limited to the model originally selected when they were launched.
Rewards Paid in Quote Assets
Rewards under the new system are paid in the token's quote asset. BSCN specifically identifies SOL and PUMP as examples of assets that can be distributed through the mechanism.
This means the reward asset is determined by the token's quote asset rather than necessarily being paid in the token being held. The system therefore links the distribution process to the underlying trading pair structure used by eligible tokens on the platform.
BSCN did not provide additional details on the percentage of protocol fees allocated to the distribution wallet, the precise eligibility requirements, or the minimum balance required to receive rewards.
New Option for Token Creators
The introduction of Holder Rewards gives creators a choice when launching tokens on Pumpfun. Existing eligible tokens can also seek to transition into the system, expanding the feature beyond newly created assets.
The move marks a change in how Pumpfun handles the distribution of protocol fees to participants. Rather than Cashback Mode, the platform is now using a holder-based mechanism in which rewards are distributed according to eligible balances.
The system's operation is centered on recurring distributions throughout the hour, with the amount received by each eligible holder determined by their respective balance.
For now, the key changes are the removal of Cashback Mode, the launch of Holder Rewards, and the availability of the new model to both new token launches and eligible existing tokens.
writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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