Tron Founder Justin Sun announced on August 3 that the SunPump platform community will implement a '100% on-chain buyback and burn process,' differing from the earlier plan to burn liquidity pool (LP) tokens.
Community-Driven Decision
Justin 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. After discussions, the community reached a consensus to adopt the on-chain buyback and burn process instead. This method provides complete transparency and allows the community to verify all transactions on the blockchain.
Support and Caution from the Crypto Community
The crypto community on X largely supported Sun's announcement. ChainsCard chairman Ben Todar mentioned the importance of transparency and simplicity for building community trust. However, he 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.
SunPump: A Growing Platform
Launched in August 2024, the SunPump.meme platform is a meme coin generator allowing users to create their tokens with minimal capital investment. The platform operates similarly to Solana's Pump.Fun, where users can issue new tokens for a small fee. SunPump employs a unique bonding curve mechanism designed to ensure continuous liquidity for the tokens created on the platform. 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 aims to provide constant liquidity for trading, reducing the risks associated with price volatility.
The SunPump platform has seen significant success since its launch. On August 21, Tron's daily revenue reached a new record of $3.84 million, thanks to the SunPump meme coin generator. 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. Support from the crypto community and a strategic partnership with the Poloniex exchange help strengthen SunPump's position as a leading platform for meme coin creation.
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