Pump.fun Founder Responds to Platform Rewards Controversy: Early Mechanism Had Flaws, Algorithm Adjusted to Improve Content Quality

Odaily reports that Pump.fun founder alon posted on X in response to controversy surrounding the Callout Rewards incentive mechanism. He stated that the program was launched two months ago with the goal of making Pump.fun the "most rewarding trading platform," but Callout Rewards V1 inadvertently incentivized the wrong behavior, leading to an increase in low-quality spam content and reducing users' willingness to produce quality content.

alon added that the team subsequently updated the rewards algorithm to favor quality over quantity. The more callouts a user posts daily, the more the marginal returns gradually diminish. Currently, Pump.fun has distributed rewards to accounts of various sizes, including large accounts as well as accounts with fewer than 10 followers, with no special treatment. Future incentive logic will revolve around "discovering quality tokens — building trader trust — earning rewards based on user trading volume," and he emphasized that simply farming callouts or exploiting followers for sell-off arbitrage cannot generate long-term returns.