To really understand the Pumpkin protocol, let’s first take a closer look at the problem with the Pump.fun protocol.
Pump.fun makes money in two main ways:
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Trading fees from the bonding curve.
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A 1.5 SOL fee taken from the liquidity of every token that moves to Raydium.
Individually, these fees might seem small, but with thousands of tokens launching every day, the numbers add up fast. So far, Pump.fun has brought in a massive $409 million in revenue, averaging about $68 per token.
Now, even if Pump.fun wanted to share that revenue with users, the amount per creator or holder would be tiny — just a few dollars — which wouldn’t make much of a difference.
Introducing Pumpkin: A Better Way Forward
This is where Pumpkin steps in with a game-changing approach:
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Token creators earn SOL on every trade.
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Holders earn SOL by staking their tokens.
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Pumpkin Milestones for incentivizing long-term growth.
All of this is made possible by a completely new architecture that allows tokens to continue sharing trading fees even after they transition to Raydium.
Why is this important?
A majority portion of any token’s trading volume happens once it reaches Raydium. By enabling revenue sharing beyond this point, Pumpkin creates opportunities for both creators and holders to earn real revenue in SOL.
The Numbers
Our team spent weeks analyzing data from Pump.fun, and the results are astonishing. Based on Pumpfun data, Pumpkin can share over $500 million in revenue with users — This is just not possible in pump fun due to their architecture.
To understand Pumpkin’s potential, let’s look at some examples based on Pump.fun tokens:
Peanut the Squirrel ($PNUT):
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Creator Earnings: $5.3M
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Holders’ Earnings: 11.5% APY
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Pumpkin Index Fund Value Addition: $15.5M
Fartcoin ($FARTCOIN):
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Creator Earnings: $4.5M
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Holders’ Earnings: 6.2% APY
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Pumpkin Index Fund Value Addition: $13.4M
You can see these stats for your favorite token on our earnings checker at the link below:
You might be wondering:
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What are all the exciting features pumpkin brings?
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What are the earning potential for creators, token holders & protocol itself?
In our next article we will be sharing exactly that, so stay tuned!
Get updated
Here are some quick links to get updated on what’s happening in Pumpkin.
Website: https://pumpkin.fun/
Telegram: https://t.me/pumpkindotfun
Twitter: https://x.com/pumpkindotfun