SunPump to Adopt '100% On-Chain Buyback and Burn' Mechanism, Says Justin Sun
Date: 2024-09-04 Author: Oliver Abernathy Categories: BUSINESS
Meme token SunPump will adopt a "100% on-chain buyback and burn" mechanism, Tron founder Justin Sun announced.
In a recent post on X, Sun said the decision was made after community discussions that reconsidered the original plan to burn liquidity pool (LP) tokens.
"Many community members do not fully understand what LP token burning means, which may lead to confusion," he wrote.
LP token burning may cause problems
Sun acknowledged that while burning LP tokens, a strategy used by other popular meme tokens like Shiba Inu, could increase "token liquidity depth," the process remains difficult for many community members to understand.
Sun noted that LP token burns, while beneficial, involve complex processes that can cause confusion.
To address this, the community has chosen a more transparent and auditable approach — implementing a 100% on-chain token buyback and burn process.
According to Sun, this method is not only simple, but also eliminates the need for additional explanations, as all transactions will be recorded on the blockchain for immutable verification.
The new token buyback and burn process will begin immediately, which will be a significant change in the token’s governance strategy.
Sun noted that this approach is not exclusive to SunPump, citing the example of Binance, which has been conducting similar buybacks and burns of its BNB token.
Remarkably, SunPump recently surpassed its Solana-based predecessor, Pump.fun, in daily revenue and activity.
According to blockchain researcher Adam, SunPump issued 7,351 tokens and earned $585,000 within 24 hours, surpassing Pump.fun with 6,701 tokens and $366,000 in revenue.
Notably, SunPump’s launchpad saw a higher “launch success rate,” with 1.98% of issued tokens listed on Sunswap, Tron’s decentralized exchange, after reaching trading volume thresholds.
In comparison, only 1.26% of tokens issued on Pump.fun reached Raydium, Solana’s exchange.
Justin Sun Wins SEC Victory
Last month, a New York district judge rejected a motion by the U.S. Securities and Exchange Commission (SEC) aimed at weakening the protections of Tron founder Justin Sun.
The ruling by U.S. District Court Judge Edgardo Ramos is a setback for the SEC, which is pursuing a case against Sun.
The case, which began in March 2023, accuses Sun and the Tron Foundation of unregistered securities offering and sale, manipulative trading, and illegal promotion of crypto assets, specifically Tron (TRX) and BitTorrent (BTT) tokens.
In response, Sun and his legal team filed a motion to dismiss the lawsuit in April, arguing that the SEC has no jurisdiction over overseas digital asset transactions conducted on global platforms.
In April, the SEC amended its lawsuit against Tron and its crypto companies following Sun’s attempt to dismiss the case.
In updated court filings, the SEC said the Tron founder “has traveled extensively” to the United States during his work on behalf of the Tron Foundation, BitTorrent Foundation, and/or Rainberry.
