On August 3, Justin Sun, the founder of Tron, announced a new strategy for SunPump, a meme token community platform, involving a 100% on-chain buyback and burn process. This approach differs from the earlier plan to burn liquidity pool (LP) tokens.
Community-Driven Decision
On September 3, Justin Sun revealed the community's decision through a post on X (formerly Twitter). 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, ensuring complete transparency and allowing the community to verify all transactions on the blockchain.
Support and Caution from the Crypto Community
Sun's announcement was largely supported by the crypto community on X. ChainsCard chairman Ben Todar spoke about the importance of transparency and simplicity for building community trust. 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.
SunPump: A Growing Platform
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. 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 is intended to provide constant liquidity for trading, reducing the risks associated with price volatility.
Since its launch, SunPump has achieved considerable success. On August 21, Tron's daily revenue reached a new all-time high of $3.84 million, driven by the SunPump meme coin generator. The platform charges a creation fee of approximately 20 TRX (around $2.60) and imposes a 1% trading fee. Justin Sun has emphasized the importance of the strategic partnership with the Poloniex cryptocurrency exchange, which enables high-volume trading projects to gain listing on the exchange. Tron's robust stablecoin liquidity, driven by Tether's USDT, could lead to the emergence of billion-dollar meme coins.
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