Justin Sun, the founder of Tron, has announced a big change in how the SunPump meme token is managed: it will now be bought back and burned 100% on the blockchain. The old way, which involved burning liquidity pool (LP) tokens, was replaced by this new method on September 3. The goal is to make the system more open and easy to check.
The community talked about how complicated and confusing it could be to burn LP tokens, which led to the choice to use this onchain process. At first, LP token burning was seen as helpful and was based on the success of other meme tokens like Shiba Inu. However, it involved complicated steps that not everyone in the community fully understood.
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.
— H.E. Justin Sun🌞孙宇晨(hiring) (@justinsuntron) September 3, 2024
Burning LP tokens has several advantages, including increasing token liquidity…
Sun explained that while burning LP tokens can increase “token liquidity depth” and make liquidity more regulator-friendly, an easier answer was needed because the process was too complicated. With the new buyback and burn method, all transactions are recorded on the blockchain. This makes sure that they can’t be changed and gets rid of the need for extra justifications. We want this method to be clear and easy to understand so that anyone can check the funds that were lost.
This is part of a bigger plan to make the SunPump coin more valuable and useful. Notably, SunPump recently did better than its Solana-based predecessor, Pump.fun, in terms of daily activity and income. SunPump launched 7,351 tokens on August 21 and made $585,000, more than Pump.fun’s 6,701 coins and $366,000 in income.
SunPump is presenting itself as a more open and transparent platform by implementing this onchain buying and burn process. This could set a new standard for meme tokens in the cryptocurrency world.
