Burn

Memecoin

Shiba Inu

Justin Sun, the founder of Tron,&nbsp;<a style="text-decoration:none" href="https://x.com/justinsuntron/status/1830872361358499892" rel="noopener noreferrer nofollow">announced</a> on Aug. 3 that the&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/what-is-tron-blockchain-s-sun-pump" rel="noopener noreferrer nofollow">SunPump</a> meme token platform community will implement a "100% on-chain buyback and burn process." This differs from the earlier plan to burn liquidity pool (LP) tokens, a method commonly used by other meme tokens like Shiba Inu (SHIB).
<div>
 <blockquote class="twitter-tweet">
 Regarding the issue of revenue buyback and burning for <a href="https://twitter.com/sunpumpmeme?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@sunpumpmeme</a> , 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) <a href="https://twitter.com/justinsuntron/status/1830872361358499892?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 3, 2024</a>
 </blockquote>
</div>
The new approach aims to provide transparency and simplicity, ensuring that all burn records are accessible on-chain.
<blockquote>
 “Burning LP tokens has several advantages, including increasing token liquidity depth, allowing the burned liquidity to still be utilized, and being more regulator-friendly,” Sun stated.
</blockquote>
<h2 dir="ltr" id="span-span-community-driven-decision-span-span">Community-Driven Decision</h2>
Sun revealed the community's decision through a post on X (formerly Twitter) on September 3. He noted that the initial suggestion to burn LP tokens was met with confusion, as the concept is complex and difficult for many community members to grasp.&nbsp;
&nbsp;
After discussions, the community reached a consensus to adopt the on-chain buyback and burn process instead. The Tron Founder believes this method provides complete transparency and allows the community to verify all transactions on the blockchain.&nbsp;
<h2 dir="ltr" id="span-span-support-and-caution-from-the-crypto-community-span-span">Support and Caution from the Crypto Community</h2>
The crypto community on X largely supported Sun's announcement. ChainsCard chairman Ben Todar&nbsp;<a style="text-decoration:none" href="https://x.com/BenTodar/status/1830872963014386039" rel="noopener noreferrer nofollow">spoke</a> about the importance of transparency and simplicity for building community trust.&nbsp;
&nbsp;
However, Todar also cautioned that focusing solely on buyback and burn might overlook the importance of liquidity. He pointed out that adding liquidity through LP tokens deepens the market and attracts larger investors, which is crucial for the growth and stability of the token.
<h2 dir="ltr" id="span-span-sunpump-a-growing-platform-span-span">SunPump: A Growing Platform</h2>
Launched in August 2024, SunPump.meme is a meme coin generator that allows users to create their own tokens with minimal capital investment. The platform operates similarly to Solana's Pump.Fun, where users can issue new tokens for a small fee.&nbsp;
&nbsp;
SunPump employs a unique bonding curve mechanism designed to ensure continuous liquidity for the tokens created on the platform.
&nbsp;
When a project reaches 100% of its bonding curve at a value of $69,420, the smart contract automatically deposits around 100,000 TRX and 200 million tokens into the SunSwap V2 liquidity pool. This process is intended to provide constant liquidity for trading, reducing the risks associated with price volatility.
<h2 dir="ltr" id="span-span-revenue-and-future-potential-span-span">Revenue and Future Potential</h2>
SunPump has seen considerable success since its launch. On August 21, Tron’s daily revenue reached a new all-time high of $3.84 million, driven by the SunPump memecoin generator. This achievement placed Tron ahead of established networks like Ethereum and Solana in terms of daily revenue.
&nbsp;
The platform charges a creation fee of approximately 20 TRX (around $2.60) and imposes a 1% trading fee. These fees contribute to the platform’s sustainability and the liquidity pool. Since its launch, SunPump generated over&nbsp;<a style="text-decoration:none" href="https://dune.com/hashed_official/sunpumpmeme" rel="noopener noreferrer nofollow">29.8 million</a> TRX in revenue, according to Dune, valued at approximately&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/tron/" rel="noopener noreferrer nofollow">$4.5 million</a>, as of writing.
<h2 dir="ltr" id="span-span-simplifying-memecoin-creation-span-span">Simplifying Memecoin Creation</h2>
Justin Sun has been vocal about the future potential of SunPump.meme and the advantages it offers over similar platforms.&nbsp;
&nbsp;
One of the platform's key strengths is its strategic partnership with the Poloniex cryptocurrency exchange. This partnership ensures that projects maintaining a daily trading volume of $1 million for three consecutive days qualify for listing on Poloniex.
&nbsp;
According to Sun, Tron's robust stablecoin liquidity, driven by Tether's USDT, gives it an edge over other networks. He highlighted that Tron’s large stablecoin supply could lead to the emergence of several billion-dollar meme coins.

Justin Sun’s SunPump to Initiate "100% On-chain Buyback and Burn Process"

Table of Contents

BSCN

Other articles published on Sep 11, 2024

Io.net and Flock.io Launch World’s First Proof-of-AI Consensus Mechanism

Millions of Australians Await Clear Crypto Regulations Before Entering the Market, New Report Rev...

State Street To Add Bitcoin ETF Exposure Soon: Bloomberg Analyst

WazirX Hacker Resurfaces Moving $23 Million in Ethereum

Where to Look for No Deposit Bonuses in Different Countries?

Young consumers may be getting bored with blockchain loyalty reward programs

Join our free newsletter for daily crypto updates!