How it works
Every trade of a coin pays its creator fee. Here that fee fills the coin’s own fund, and the fund buys the coin back whenever its price dips, then burns every token it bought. No one clicks anything: it runs by itself, for as long as the coin trades.
The vault
Every coin has its own vault: a wallet whose key is derived on the server for that coin alone. 100% of the coin’s pump.fun creator fees go to it.
Launched here: the vault is the coin’s creator on pump.fun, so pump.fun pays it directly. Brought from pump.fun: the coin’s creator opens its pump.fun fee split and names the vault as the only shareholder, then revokes the split’s admin. pump.fun lets a coin redirect its fees once; after that nobody, the creator included, can point them anywhere else. The coin goes live here only once the chain shows exactly that. Coins that trade against another token than SOL cannot be brought.
Fees waiting at pump.fun are collected into the vault every 30 minutes. Each collection is split once, and the split is written down in the same step:
- every live stream its share, split between the slices that were sold;
- the creator their share (chosen when the coin is added, at most 50%), less what they sold as streams;
- everything else to the fund.
The fund
The fund can do one thing: buy its own coin and burn it. There is no instruction anywhere that sends it to a wallet of somebody’s choosing. When a buy is queued its amount is taken out at once, so two buys never spend the same SOL; what a buy did not need comes back, and a buy that fails is refunded whole.
When it buys
Every 20 seconds the coin’s price is read: from its bonding curve on chain while it is on it, and after it graduates from Jupiter, which prices it by quoting its pools (and is what the fund swaps through). The fund compares the price of the last minute and a half (a median, so one trade cannot move it) with the highest one-minute price of the last 24 hours, the day’s high. With the default rules:
- 15% under the day’s high: it spends 20% of the fund.
- 30% under the day’s high: it spends 35% of the fund.
- 50% under the day’s high: it spends 50% of the fund.
- In the same dip it buys again only 10% under its last buy, and never twice within 15 minutes. A new high starts a new dip.
- A day without a dip, it spends 10% anyway, so the money never sleeps.
- No single buy is bigger than 2% of the SOL in the coin’s pool, which moves the price about twice that. The fund supports the chart; it never becomes the market, and a dump cannot make it spend everything at once.
- No fresh price, no buy. A buy smaller than 0.0500 SOL waits for the fund to grow.
The creator picks the style when adding the coin: Dip buyer, Steady, Deep dips. Holders can change it by vote.
The burn
On the bonding curve the vault buys and burns in a single transaction: it buys an exact number of tokens, burns them, and closes the token account so its rent comes back. After graduation it swaps through Jupiter, then burns everything it received. Either way the tokens are gone for good, and the supply shown on the coin’s page goes down with them. Every buy links to its transaction.
Votes
A holder with at least 0.1% of the supply can open a vote: a buyback now, of an amount they choose, or other rules for when the fund buys. A vote is open for a fixed time (an hour by default). Each vote weighs what the wallet holds, and counts with the smaller of two readings: when it was cast and when the vote closes. Buying in to vote and selling right after gains nothing.
A proposal passes when more weight says yes than no and at least 2% of the supply voted. It is carried out at once, by the same code as the fund’s own buys.
The fee market
A creator can sell part of their own share of future fees for SOL now, without selling a single token of the coin. A stream is a share of every future arrival of a coin’s fees (1% to 50%), cut into slices. From the moment it is listed, every arrival pays that share, split between the slices bought; unsold slices keep paying the seller. A stream runs 7 or 30 days, or with no end. Slices can be resold to anyone, at the seller’s price. The fund’s share is never sold.
Buyer protection. A creator is paid 50% of a sale at once and the rest in a straight line over the term (30 days for a stream with no end). If the coin stops trading (its fees over 48 hours fall under a tenth of its daily fees when the stream was listed), everything not yet released goes to the slice holders instead. A stream can be listed once the coin has 6 hours of fee history.
The platform charges 2% on top of a primary purchase and 1% on top of a resale, paid by the buyer. “Pays back in” on the market assumes the last 24 hours’ pace continues, which memecoins rarely do.
Payouts
Everything a wallet is owed from one coin (its slices’ share, a creator’s share and released proceeds, refunds) is paid out of that coin’s vault in one transfer once it reaches 0.0020 SOL, sixteen transfers to a transaction. What is owed is tied to the payout before anything is sent, so nothing is ever paid twice; a payout that fails is untied and paid in the next round.
Safety
- Nothing is bought or sold for a coin until its fees are locked to its vault on chain; a coin whose fee split stops saying so is paused at once.
- Every transaction a vault signs is simulated on mainnet first; one that would fail is never sent.
- Every arrival, buy, vote, trade and payout is on the activity page and, for live coins, on chain.
- The vault keys are derived on the server. Holders trust this server with them, as they trust any custodial app; the rules above are what it will do with them, and all of it can be checked.
Risks
- A coin’s fees can fall to zero at any time. A fund can stay empty, and buying the dip does not stop a coin from falling further.
- Anyone can see the line under which a fund buys. Traders may sell into it; the cap per buy and the steps between buys limit what that costs the fund.
- pump.fun can change how creator fees work, as it has before.
- A share of a coin’s revenue may be treated as a security in some countries. Check the rules where you live. Nothing here is investment advice.