Can live streaming be tokenized? How Pump.fun builds a creator Capital Market to challenge Twitch and Kick.

Author: Alea Research

Compiled by: Tim, PANews

The rise of live streaming has transformed content from a form of entertainment into a high-leverage market. Unlike traditional work models where one hour of labor yields a fixed return, live streaming can multiply the value of that hour by the number of viewers. One hour of content can generate thousands of hours of audience attention, which can be monetized by advertisers, platforms, and creators. However, creator income still exhibits a highly skewed distribution.

On platforms like Twitch and YouTube, income mainly comes from subscription fees and ad revenue sharing. Due to a tiered revenue sharing model, regular streamers can only keep 50% of their subscription income, while top creators can earn more than 10 times that of regular streamers. New entrants like Kick have disrupted this model by allowing streamers to keep 95% of their subscription income, leading to an arms race between "Kick and Twitch" and resulting in multi-million dollar signing deals.

The Pump.fun platform, known for issuing meme coins, is entering this market. In mid-2025, it quietly launched a live streaming feature and adopted a dynamic charging model that links streamer income to the performance of its tokens.

This issue will explore the capital market operation model of the creators of Pump.fun, analyze its strategic significance in combating the competition from Kick and Twitch, and elucidate the value of live streaming tokenization.

Status: Kick vs. Twitch

Twitch has pioneered the live streaming industry, with an average monthly viewing time of as high as 1.5 billion hours. The platform adopts a standard revenue sharing model for most creators: subscription revenue is split 50/50, while ad revenue from the advertising incentive program is distributed at a 55:45 ratio. Top creators who reach the "Partner Enhancement Program" level can receive a more favorable 70:30 subscription revenue split. This mechanism creates a Pareto dynamic, where top creators capture 80% of the viewing time and earnings, while smaller creators can only fiercely compete for the remaining 20% of the market.

[Note: The dynamic meaning of Pareto refers to the process of resource allocation or decision-making where continuous adjustments and optimizations are made to approach or maintain a Pareto optimal state (i.e., a state where no party can further improve its own benefits without harming the interests of others).]

For example, Kai Cenat is the number one streamer on the Twitch platform, with active subscriptions and income that nearly surpass the total of the second to tenth top streamers.

Kick was established in 2022 with the support of the gambling platform Stake.com, challenging Twitch by promising to provide streamers with a 95% subscription revenue share and allowing content such as gambling that is restricted on Twitch. Kick has also signed lucrative contracts with top Twitch streamers for transfers, reportedly signing the top Twitch streamer xQc with a two-year non-exclusive deal worth $100 million, while signing Amouranth for between $30 million and $40 million.

During the release of these announcements, Kick gained over one million new users. These measures indicate that the live streaming platform is willing to spend heavily to attract attention, but its revenue still comes from subscription fees, advertisements, and viewer tips.

The essence of live broadcasting: attention economics and Pareto dynamics

People often mistakenly believe that live streaming is a zero-sum game, where the influx of more streamers dilutes rewards and viewing time, leading to increased competition. In fact, attention follows a Pareto distribution, with a few viral creators capturing the majority of the audience share, while most creators struggle to survive. When top streamers like Kai Cenat or IShowSpeed go live, they are actually expanding the total audience: millions of fans who might never have used the new platform will specifically register accounts to watch.

This phenomenon explains why the Kick platform is willing to pay huge signing fees: attracting attention capital can promote the growth of the entire ecosystem rather than cannibalizing the existing audience of streamers.

On the pumpfun platform, traditional Twitch streamers have begun to migrate (for example, League of Legends streamer BunnyFuFuu):

The Pump.fun platform implements this dynamic mechanism by importing fan spending power through tokens. Core audience members already have a monthly tipping budget, and purchasing streamer tokens merely converts this expenditure into tradable assets. Holders will actively promote streamers (driving up token prices), and if a creator suddenly becomes popular, early supporters can also share in the profits. In this way, streamer tokens transform tipping behavior into equity investment, deeply binding the interests of fans with the success of creators, while also effectively alleviating the psychological feeling of "popularity dilution" during the diversion of new streamers.

Entering the Creator Capital Market

Pump.fun's live streaming transformation has introduced a brand new economic model: host tokens. Viewers do not need to (or can simultaneously) tip or subscribe, but instead purchase tokens tied to specific hosts. The value of these tokens fluctuates with supply and demand, creating an investment mechanism that allows fans to speculate on the popularity of creators.

Streamers can earn a commission from each transaction, with the highest fee rate for low market cap tokens under the Project Ascend plan being 0.95%. The fee rate will naturally decrease as the token's market cap grows, with a minimum of 0.05%.

Pump.fun has now restored its live streaming feature for certain users and strengthened content review to prohibit violent and abusive animal content. However, the most critical innovation lies in directly linking fan engagement with creator income through a tokenized economic cycle.

Tokenized live streaming model of Pump.fun

Project Ascend has adjusted the original fixed creator fee rate of 0.05% for Pump.fun to a floating mechanism: tokens with a market value below $300,000 will incur a fee of 0.95%, while tokens exceeding $20 million will only incur a fee of 0.05%. This mechanism allows small creators to earn nearly 1% from each token transaction. According to Blockworks, this update helps Pump.fun regain market share, with total platform revenue exceeding $834 million, annualized revenue approaching $492 million, and daily buyback volume surpassing $68 million.

Pump.fun had previously suspended its live streaming due to dangerous stunt performances. It has now resumed its live streaming feature, currently available to 5% of users, and has implemented stricter regulations: prohibiting violence, animal abuse, and hate speech.

Audiences can freely buy and sell streamer tokens without permission, with no single entity controlling the liquidity. They can go long or short on the streamer's tokens, which not only increases market depth but also provides price signals regarding community sentiment. Tokens linked to creator performance also incentivize them to maintain a stable streaming frequency and community interaction.

Why choose Pump.fun instead of Twitch or Kick?

• Token Incentives: On platforms like Twitch or Kick, fans' donations or subscriptions do not yield financial returns; however, on the Pump.fun platform, donations will be converted into an asset. If the streamer's popularity increases, their tokens may appreciate in value, providing speculative upside potential for early supporters.

• The income and success of creators are positively correlated: streamers' earnings are no longer limited by fixed subscription fees. They can earn fees from token trading volumes and enjoy the benefits brought by network effects as more traders join. Pump.fun's dynamic fee model means that, compared to the old fixed fee model, small creators can earn up to 19 times more per transaction.
• Community ownership: Hosts and viewers share economic incentives. This may encourage more collaborative content, such as shared tasks or community decisions about future live broadcasts.

Conclusion

Pump.fun believes that by tokenizing fan communities and allowing fans to share in revenue dividends, it can expand visibility and the scale of rewards. Whether Pump.fun can replicate the rapid growth momentum of the early days of the live streaming platform Kick depends on its ability to attract top streamers, maintain a strict content review mechanism, and expand its dynamic fee model.

But if the experiment is successful, it could create a new paradigm for the creator economy, merging live streaming, trading, and speculation.