Justin Sun, the founder of Tron, has announced that the SunPump meme token community has now decided to implement a 100% onchain buyback and burn process.
According to Sun’s post on X, the decision follows a community discussion that moved away from previous intentions to burn liquidity pool (LP) tokens.
“Many community members don’t fully understand what LP token burning means, which can lead to misunderstandings.”
Source: Justin Sun
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LP token burning complexities
The initial suggestion to burn LP tokens was inspired by practices witnessed by other mainstream meme tokens like Shiba Inu (SHIB), which was considered advantageous.
Sun explained the advantages of LP token burning, which enables the increase of “token liquidity depth” while allowing the burned liquidity to remain usable and “more regulator-friendly.”
Due to the complexities of LP token burning, Sun believes the new implementation of a 100% onchain buyback and burn process could offer a “better approach.”
Related: Justin Sun says removing 12K Bitcoin from USDD is just ‘DeFi 101’
Buyback and burn
Sun stated that the new buyback and burn process will be implemented “starting today” as of Sept. 3 and is “easier to verify,” more “straightforward,” and eliminates complexities.
By directly implementing a 100% onchain buyback and burn process, all funds burned will be recorded onchain for immutable verification and will not require “the need for any explanations.”
This process is not unique to SunPump, as seen by entities like the cryptocurrency exchange Binance, which uses a portion of profits to buy back and burn its BNB (BNB).
Related: Judge denies SEC attempt to hamper Tron’s defense amid dismissal ploy
SunPump flips Pump.fun
On Aug. 21, SunPump flipped its Solana-based predecessor, Pump.fun in daily revenue and activity.
Blockchain researcher Adam noted that the number of new tokens created on SunPump closed the day higher than the comparable metrics on Pump.fun.
Over the 24-hour period cited by Adam, SunPump witnessed 7,351 tokens launched and $585,000 in revenue, as opposed to Pump.fun’s 6,701 tokens launched and $366,000 in revenue.
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