SunPump to Implement “100% On-Chain Buyback and Burn” Mechanism, Justin Sun Says

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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September 3, 2024

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The SunPump meme token will adopt a “100% on-chain buyback and burn” mechanism, Tron founder Justin Sun said.

In a recent post on X, Sun said the decision follows a community discussion that reconsidered the initial plan to burn liquidity pool (LP) tokens.

“Many community members don’t fully understand what LP token burning means, which can lead to misunderstandings,” he wrote.

LP Token Burning Can Cause Issues

He acknowledged that while LP token burning, a strategy employed by other popular meme tokens like Shiba Inu, can enhance “token liquidity depth,” it remains a challenging concept for many community members to grasp.

Sun noted that LP token burning, while beneficial, involves intricate processes that could potentially lead to confusion.

To address this, the community has opted for a more transparent and easily verifiable approach—implementing a 100% on-chain buyback and burn process.

According to Sun, this method is not only straightforward but also eliminates the need for additional explanations, as all transactions will be recorded on-chain for immutable verification.

The new buyback and burn process is set to begin immediately, marking a significant shift in the token’s management strategy.

Sun pointed out that this approach is not exclusive to SunPump, citing the example of Binance, which conducts similar buyback and burn operations with its BNB token.

Notably, SunPump recently outperformed its Solana-based predecessor, Pump.fun, in daily revenue and activity.

According to blockchain researcher Adam, SunPump launched 7,351 tokens and generated $585,000 in revenue within a 24-hour period, surpassing Pump.fun’s 6,701 tokens and $366,000 in revenue.

Notably, SunPump’s launchpad has demonstrated a higher “graduation” rate, with 1.98% of launched tokens being listed on Sunswap, Tron’s decentralized exchange, after meeting trading volume thresholds.

In contrast, only 1.26% of tokens launched on Pump.fun have made it to Raydium, Solana’s exchange.

Justin Sun Scores Win Against SEC

Last month, a New York District Judge denied a motion by the U.S. Securities and Exchange Commission (SEC) aimed at weakening Tron founder Justin Sun’s defense.

The ruling, delivered by United States District Court Judge Edgardo Ramos, represents a setback for the SEC as it continues its case against Sun.

The case, which began in March 2023, alleges that Sun and the Tron Foundation engaged in the unregistered offer and sale of securities, manipulative trading, and illegal promotion of crypto assets, specifically Tron (TRX) and BitTorrent (BTT) tokens.

In response, Sun and his legal team moved to dismiss the lawsuit in April, arguing that the SEC lacks jurisdiction over foreign digital asset transactions conducted on global platforms.

In April, the SEC edited its Tron lawsuit against Sun and his crypto companies following his attempted dismissal of the litigation.

In the updated court filings, the SEC claimed that the Tron founder “traveled extensively” to the U.S. throughout “his work on behalf of the Tron Foundation, the BitTorrent Foundation, and/or Rainberry.”