Pump.fun Revamps Creator Fees to Incentivize Decentralized Governance
🔥 Key Takeaways
- Pump.fun introduces a new creator fee sharing system to promote decentralized governance.
- The new system allows teams and CTO admins to split fees across up to 10 wallets.
- Transfer of coin ownership and revocation of update authority are now possible.
Pump.fun’s New Creator Fee Sharing System: A Step Towards Decentralization
Pump.fun, a popular platform for creating and managing cryptocurrency tokens, has announced a significant update to its creator fee structure. The new system aims to promote decentralized governance by allowing teams and CTO admins to split fees across multiple wallets, transfer coin ownership, and revoke update authority.
The previous creator fee system, where a single entity controlled the fees, “may have skewed” incentives, according to Pump.fun. This led to a concentration of power and decision-making authority, which is antithetical to the principles of decentralization. By introducing a more distributed fee sharing system, Pump.fun hopes to encourage more collaborative and community-driven decision-making processes.
Decentralizing Governance through Multi-Wallet Fee Sharing
The new system enables teams and CTO admins to split fees across up to 10 wallets, promoting a more decentralized and community-driven approach to governance. This feature is particularly useful for projects with multiple stakeholders or teams working together on a single token.
By allowing fees to be distributed among multiple wallets, Pump.fun is reducing the reliance on a single entity to manage and distribute funds. This not only promotes decentralization but also increases transparency and accountability within the ecosystem.
Transfer of Coin Ownership and Revocation of Update Authority
In addition to the new fee sharing system, Pump.fun has also introduced features that enable the transfer of coin ownership and revocation of update authority. These features provide an additional layer of security and flexibility for token creators and administrators.
The ability to transfer coin ownership ensures that tokens can be securely transferred to new owners or administrators, reducing the risk of single points of failure. Similarly, the revocation of update authority ensures that unauthorized updates cannot be made to a token’s configuration, further enhancing security and stability.
Conclusion
Pump.fun’s new creator fee sharing system and features mark a significant step towards promoting decentralized governance and community-driven decision-making processes. By enabling teams and CTO admins to split fees across multiple wallets, transfer coin ownership, and revoke update authority, Pump.fun is empowering token creators and administrators to build more collaborative and secure ecosystems.
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