Alon Cohen, co-founder of the Meme coin issuance platform Pump.fun, recently posted a message admitting that there are issues with the current creator fee mechanism on the platform and that adjustments are needed.

The dynamic fee version 1 launched a few months ago was somewhat effective—it indeed attracted many newcomers to create tokens on the platform, participate in live streams, and also helped double the on-chain transaction volume by 2025. However, Alon Cohen openly stated that this model has reached a bottleneck, essentially being "unsustainable."

Why is it unsustainable? The problem lies in the skewed incentives. The existing mechanism overly encourages low-risk token issuance behaviors but fails to effectively incentivize high-risk trading activities that can generate real value. More painfully, the actual use of creator fees is limited—it’s difficult to use these funds for community building, inviting celebrities for promotion, or other activities that can genuinely enhance the token ecosystem quality. As a result, the behavior of ordinary Meme coin deployers remains limited, and the fee mechanism has become merely a decoration.

The good news is that change is on the way. Alon Cohen revealed that "major changes are coming," but he did not specify how exactly they will be implemented. Industry insiders speculate that the new mechanism may involve restructuring in areas such as dynamic fee distribution, expanding the application scenarios of fees, and strengthening incentives for trading behaviors.

The specific details of the changes will have to wait for official announcements.