TL;DR
- New Strategy: Justin Sun introduces a 100% on-chain buyback and burn process for SunPump, replacing the previous LP token burning plan.
- Community-Driven: The change follows community feedback for a simpler, more transparent method, enhancing liquidity and regulatory compliance.
- Immediate Impact: Implemented on September 3, 2024, the strategy has already boosted SunPump’s daily revenue and activity, surpassing its predecessor, Pump.fun.
Justin Sun, the founder of Tron, has announced a new strategy for the SunPump meme token community. This strategy involves a 100% on-chain buyback and burn process, marking a significant shift from the previous plan to burn liquidity pool (LP) tokens.
Regarding the issue of revenue buyback and burning for @sunpumpmeme , the community previously suggested burning liquidity LP tokens because this approach is used by mainstream meme tokens like SHIB.
Burning LP tokens has several advantages, including increasing token liquidity…
— H.E. Justin Sun🌞孙宇晨(hiring) (@justinsuntron) September 3, 2024
Community-Driven Decision
The decision to adopt this new approach came after extensive community discussions. Sun revealed that many community members found the concept of LP token burning complex and difficult to understand.
This led to misunderstandings and confusion, prompting the need for a more transparent and straightforward method. The new buyback and burn process is designed to be easier to verify and more transparent.
All transactions will be recorded on-chain, providing immutable verification and eliminating the need for additional explanations. This approach is expected to enhance the token’s liquidity depth while being more regulator-friendly.
Implementation and Immediate Effects
The implementation of the 100% on-chain buyback and burn process began on September 3, 2024. This method is not unique to SunPump; similar strategies have been employed by other entities, such as Binance with its BNB token.
The immediate effects of this new strategy are already visible, with SunPump outperforming its Solana-based predecessor, Pump.fun, in daily revenue and activity.
SunPump Overtakes Pump.fun in August Revenue Surge
On August 21st, SunPump surpassed Pump.fun in both activity and daily revenue. That day, the Tron network generated $3.48 million in revenue within 24 hours, up from $3.38 million the previous day, according to DefiLlama.
This surge in revenue led to high valuations for many memecoins launched on the platform. Notably, one trader reportedly turned $1,000 into $750,000 with SunWukong, while coins like SunDog reached valuations as high as $270 million.
Community Reactions
The community has largely welcomed this new approach. By moving away from the complexities of LP token burning, SunPump aims to foster a more inclusive and understandable environment for its members.
The transparent nature of the new process is expected to build greater trust and engagement within the community. Justin Sun’s announcement of a 100% on-chain buyback and burn strategy for SunPump represents a significant evolution in the management of meme tokens.
By prioritizing transparency and simplicity, this new approach is set to enhance the token’s liquidity and regulatory compliance, while also boosting community trust and participation.
