- SunPump switches from LP token burning to a 100% Onchain buyback and burn process for enhanced transparency and simplicity.
- The new Onchain process ensures all transactions are recorded on the blockchain, providing immutable verification of funds burned.
- SunPump outperformed Pump.fun, generating $585,000 in revenue and launching 7,351 tokens in a 24-hour period.
Justin Sun, the founder of Tron, has revealed a strategic shift in the handling of the SunPump meme tokenIn a significant development for the SunPump community. The community, following an extensive discussion, has opted to abandon the previously proposed plan to burn liquidity pool (LP) tokens.
Instead, they will implement a 100% Onchain buyback and burn process. This new approach is set to enhance transparency and simplify verification.
Community Decision After Extensive Discussion
Notably, the decision to shift from LP token burning was not made lightly. The community initially considered burning LP tokens after observing similar practices by other popular meme tokens like Shiba Inu.
Furthermore, these practices were thought to be beneficial, particularly for increasing token liquidity depth. However, after further analysis, it became clear that while LP token burning has its merits, it also introduces complexities that could complicate transparency.
Justin Sun highlighted that the complexities of LP token burning, although useful in certain scenarios, might not be the best fit for SunPump’s goals. Therefore, the community decided to pivot to an approach that would be more straightforward and easier to verify.
Advantages of Onchain Buyback and Burn
Consequently, the newly adopted Onchain buyback and burn process will allow all transactions to be recorded on the blockchain. This ensures an immutable record of the funds burned, thereby eliminating the need for any additional explanations or verifications.The transparency provided by this method is expected to build greater trust within the community and among external observers.
Notably, SunPump is not the only organization adopting this strategy; other players in the bitcoin market have also used comparable techniques.Binance, for example, has set a precedent for this type of approach by effectively employing a portion of its earnings to buy back and trash its BNB tokens.
SunPump Outpaces Competitors
Moreover, the shift in strategy comes at a time when SunPump has been gaining momentum in the market. On August 21, SunPump outperformed its Solana-based predecessor, Pump.fun, in terms of daily revenue and activity.
According to blockchain researcher Adam, SunPump saw 7,351 new tokens launched and generated $585,000 in revenue over a 24-hour period, surpassing Pump.fun’s 6,701 tokens and $366,000 in revenue. This performance underscores the growing interest in SunPump and the potential for its new buyback and burn strategy to further strengthen its position in the market.
Therefore, the SunPump community’s decision to adopt a 100% Onchain buyback and burn process marks a significant shift in strategy. SunPump seeks to boost confidence and establish an authoritative role in the industry by prioritizing openness and ease of use. The community and the overall bitcoin market are expected to profit from the choice made.
The post Justin Sun Announces 100% On-Chain Buyback for SunPump appeared first on Crypto News Land.
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