Early this morning Beijing time, Pump.fun issued a follow-up explanation about $PUMP . Founder Alon admitted that cutting rewards for calls on small-cap coins may have hurt people who genuinely discovered promising coins early. But they aren’t revealing for now what counts as a small market cap.
PUMP is the native token of Pump.fun, a memecoin launchpad that originated on Solana.
The platform’s app has a “call rewards” feature that lets users earn a share by promoting coins to their followers. Originally, rewards were based mainly on how much trading volume a call generated.
Last Monday, a spreadsheet accusing the platform of rewarding scammers went viral. Alon responded that the spreadsheet had been tampered with. However, earlier this month he had already admitted that the first version of the rewards program had indeed encouraged a lot of low-quality spam.
The rules changed starting last weekend: rewards for calls on small-cap coins were reduced, and rewards are no longer based mainly on volume. Instead, they depend on whether the people who followed the calls actually made money.
The company said that $26.75 million was distributed to users across the ecosystem last week, with call rewards accounting for part of that total. How the money is distributed directly affects which coins people promote in the app. Alon also made clear that it would take several weeks to see the effects of the algorithm changes, and that rewards already paid out cannot be clawed back.
PUMP is the native token of Pump.fun, a memecoin launchpad that originated on Solana.
The platform’s app has a “call rewards” feature that lets users earn a share by promoting coins to their followers. Originally, rewards were based mainly on how much trading volume a call generated.
Last Monday, a spreadsheet accusing the platform of rewarding scammers went viral. Alon responded that the spreadsheet had been tampered with. However, earlier this month he had already admitted that the first version of the rewards program had indeed encouraged a lot of low-quality spam.
The rules changed starting last weekend: rewards for calls on small-cap coins were reduced, and rewards are no longer based mainly on volume. Instead, they depend on whether the people who followed the calls actually made money.
The company said that $26.75 million was distributed to users across the ecosystem last week, with call rewards accounting for part of that total. How the money is distributed directly affects which coins people promote in the app. Alon also made clear that it would take several weeks to see the effects of the algorithm changes, and that rewards already paid out cannot be clawed back.