Pump.fun updates reward model amid PUMP token price decline

Pump.fun is implementing significant changes to its platform operations and reward structures. Co-founder Alon announced that starting October 10, the Callout Rewards program will shift its metric from trading volume to follower profitability. Under this new model, creators will be rewarded based on whether their recommendations result in successful trades for their followers, rather than the volume of activity generated. This change includes reduced reward rates for callouts on low-cap tokens to mitigate risks associated with thin liquidity.

Simultaneously, the PUMP token has faced substantial market pressure. The asset breached its $0.006 support level, trading near $0.0055 following a 7.2% daily decline. Market data indicates over $5 million in long liquidations, contributing to downward price pressure. Trading volume for the altcoin decreased by 20% to $427 million, while futures netflow saw a significant drop of 98% to -$27 million, reflecting capital outflows from the futures market.