Justin Sun Announces New Strategy for SunPump Meme Token Community
- WBOYOriginal
- 2024-09-05 00:13:10447browse
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.
Justin Sun, the founder of Tron, has announced a new strategy for the SunPump meme token community, which will involve a 100% on-chain buyback and burn process.
This marks a shift from the previous plan to burn liquidity pool (LP) tokens, which faced some challenges.
According to Sun, many community members found the concept of burning LP tokens to be overly complex and difficult to grasp, leading to misunderstandings and confusion.
To address this issue and ensure a more transparent and straightforward approach, the community decided to adopt the 100% on-chain buyback and burn strategy instead.
This process is easier to verify and more transparent, with all transactions being recorded on-chain, eliminating the need for additional explanations.
Moreover, this approach is expected to enhance the token’s liquidity depth and be more regulator-friendly.
The implementation of the 100% on-chain buyback and burn strategy began on September 3, 2024, and it's not a unique method, as other entities, like Binance, have used similar strategies, such as 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.
According to data from DefiLlama, 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, which is up from $3.38 million the previous day.
This surge in revenue led to high valuations for many memecoins launched on the platform, with one trader turning $1,000 into $750,000 with SunWukong. Coins like SunDog also reached valuations of up to $270 million.
The community has largely welcomed this new approach, which aims to foster a more inclusive and understandable environment for its members by moving away from the complexities of LP token burning.
The transparent nature of the new process is expected to build greater trust and engagement within the community.
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