SunPump, the meme token, is set to implement a groundbreaking “100% on-chain buyback and burn” mechanism, according to Tron founder Justin Sun. This innovative decision comes after community discussions raised concerns about the initial plan to burn liquidity pool (LP) tokens. Sun emphasized that LP token burning, a strategy observed in popular meme tokens like shiba Inu, can enhance token liquidity depth but remains a complex concept for many community members.
While LP token burning offers benefits, Sun acknowledged the potential for confusion due to its intricate processes. To address this challenge, the community has opted for a more transparent and easily understandable approach—implementing a 100% on-chain buyback and burn process.
Transparent Solution to Complexities
According to Sun, this new method not only simplifies the process but also eliminates the need for additional explanations, as all transactions will be recorded on-chain for verifiable proof. This shift marks a significant turning point in SunPump's management strategy, ensuring clarity and accountability in token operations.
Moreover, Sun highlighted that this approach is not exclusive to SunPump, citing the example of binance, which conducts similar buyback and burn operations with its BNB token. This strategic move underscores a commitment to efficiency, transparency, and sustainability in token management.
Recent data shows that SunPump has surpassed its Solana-based predecessor, Pump.fun, in daily revenue and activity. Blockchain researcher Adam reported that SunPump launched 7,351 tokens, generating $585,000 in revenue within 24 hours, outperforming Pump.fun's 6,701 tokens and $366,000 in revenue. Notably, SunPump's launchpad demonstrated a higher token listing rate on Sunswap, Tron's decentralized exchange, compared to Pump.fun's rate on Raydium, Solana's exchange.
Legal Victory and Ongoing Challenges
In a separate development, a New York District Judge recently denied a motion by the U.S. Securities and Exchange Commission (SEC) aimed at weakening Justin Sun's defense. This ruling represents a setback for the SEC in its case against Sun, which alleges unregistered offer and sale of securities, manipulative trading, and illegal promotion of crypto assets by Sun and the Tron Foundation.
The legal battle, which commenced in March 2023, has intensified as Sun and his legal team sought to dismiss the lawsuit, arguing that the SEC lacks jurisdiction over foreign digital asset transactions on global platforms. However, the SEC updated its lawsuit against Sun in response to his dismissal attempts, claiming that Sun's extensive travel to the U.S. was linked to his work with the Tron Foundation, BitTorrent Foundation, and Rainberry.
Despite legal challenges, Sun's strategic decisions regarding SunPump attest to his commitment to innovation and transparency in the crypto space. The implementation of the on-chain buyback and burn mechanism reflects a proactive approach to addressing community concerns and enhancing token management practices.
