Odaily Planet Daily reports that Pump.fun has announced two major updates on X: launching the Holder Rewards model and discontinuing the Cashback model. Under the Holder Rewards model, users earn rewards simply by holding tokens, with higher reward caps for longer holding periods. Going forward, creators issuing new tokens can choose between the standard Creator Fee model or the Holder Rewards model. Existing Cashback and Creator Fee tokens may apply to switch to Holder Rewards, but the switch is irreversible.
Under the Holder Rewards model, associated fees are sent to Pump.fun’s distribution wallet and automatically distributed to holders multiple times per hour based on their token holdings. Users with a holding value exceeding $20 are eligible for rewards. Rewards are distributed in the quote asset of the trading pair—for example, tokens paired with SOL receive rewards in SOL.