Solana-based launchpad platform Pump.fun is developing a new rewards mechanism aimed at boosting trading activity and competing with market leader LetsBONK. The system will distribute up to one billion native PUMP tokens daily to users, allocated based on their 30-day Solana (SOL) trading volume.
This initiative responds to LetsBONK’s significant surge in market share, where it now captures between 37% and 55% of daily active token creators on Solana. LetsBONK has also achieved a peak daily income of $1.78 million, establishing a strong lead over rivals.
Immediately following the announcement of the planned rewards program, the price of the PUMP token experienced a 5% increase within one hour, reaching $0.002875.
However, market analysts express caution regarding the potential longevity of the rewards model. They highlight that distributing roughly 3% of the entire PUMP token supply every month raises serious concerns about its sustainability in the long term.
The success driving Pump.fun’s competitive push from LetsBONK is largely attributed to its rapid growth in attracting daily active token creators and its superior revenue generation compared to other launchpads on the Solana blockchain.