UsePaid Pauses X Money Payouts After $1.54M Fee Surge From Pump.fun
In brief
- UsePaid halted X Money payouts after $1.54M in fees claimed in one day, driven by Pump.fun token launches.
- Fee surge was 26 times the preceding day and exceeded the entire prior week combined.
- Protocol introduced emergency restrictions capping payouts at $750 per recipient daily before full pause.
- UsePaid preparing web-based claims portal as interim solution; existing balances remain secure.
The Fee Spike
UsePaid reported that approximately $1.54 million worth of fees had been claimed during a single 24-hour period. That was roughly 26 times the amount recorded during the preceding day. More striking: the 24-hour total exceeded the amount claimed during the entire previous seven days combined.
The surge caught the protocol off guard. UsePaid first introduced emergency restrictions by temporarily limiting payments to $750 per recipient per day before deciding that approach wasn't enough.
How It Works
Under UsePaid's agreement, 80% of each fee claim belongs to the designated X recipient and 20% is used to purchase and burn the PAID token. The mechanism proved attractive to Pump.fun creators: a Pump.fun token creator can direct 100% of a token's creator fees toward the UsePaid treasury.
That arrangement has led to a wave of coins being launched around prominent X personalities. UsePaid's dashboard recently showed 367 tokens naming @beffjezos and 764 naming Elon Musk's account. The token that drove the recent surge showed approximately $37.2 million in trading volume and more than 13,000 holders.
What's Next
The project announced the suspension late Sunday. In a statement, the team said existing balances remain intact and fees will continue to accrue during the pause.
"X Money payments are currently paused while we work through payment issues," UsePaid said. "Existing balances remain safe, and fees will continue to accrue."
The project said it is preparing a web-based claims portal as an interim solution. No timeline was given for when payouts would resume or when the portal would go live.
