Justin Sun, founder of Tron has announced the SunPump community’s decision to use a buyback/burn process that is 100% on the chain.
The decision to discontinue the burning of liquidity pool tokens (LP) is effective as of September 3, 2024.
Burning LP tokens has several advantages, including increasing token liquidity. Burning LP tokens can have several benefits, such as increasing token liquidity.
This shift aims to simplify the process while enhancing transparency.
Burning LP Tokens is no longer a popular option
SunPump initially considered the burning of liquidity pool tokens (LPs) as a successful strategy, inspired by meme tokens such Shiba Inu.
The burning of LP tokens was designed to maintain regulatory compliance while increasing token liquidity.
Justin Sun, however, highlighted the misunderstandings and complexities surrounding LP token. This could limit its effectiveness.
Sun explained in his announcement that there was confusion among many members of the community about LP tokens.
SunPump has taken action to address the issue by implementing a buyback/burn process that is 100% on chain.
The new method is intended to make it easier to verify.
The verification of all transactions will no longer be able to be changed and complex explanations won’t need to take place.
SunPump’s strategy is not the only one used by entities such as Binance, which uses its BNB token.
In a coincidental move, SunPump, a Solana-based competitor, and Pump.fun, have both decided to introduce a buyback/burn process that is 100% within the chain.
Each platform has its own advantages and challenges.
SunPump surpasses Pump.fun
Pump.fun has become a market leader for meme tokens and revenue generation. It operates on the Solana Blockchain.
Pump.fun, with a valuation of 81.4 billion dollars and total value locked of 5 billion dollars (TVL), has launched 193,000 coins and made $105,000,000 in revenue.
The Raydium Protocol is an automated market maker on the chain order book that facilitates decentralized financing (DeFi).
SunPump is gaining momentum, despite its recent launch on Tron’s blockchain. SunPump, despite being younger, boasts an increased daily active users (DAU) and total value locked ($8,21 billion)
SunSwap Finance is used, which is part of Binance Smart Chain’s (BSC), network. It focuses on investment and yield farming.
SunPump, in less than four weeks after its launch, has reached a revenue total of seven million Tron.
SunPump has generated a revenue total of $7 million Tron within less than four weeks after its launch. The biggest day for @sunpumpmeme was August 20, where it generated almost 2,78 million TRX, worth approximately $400,000 and over 6,000 memecoins were created.
Both platforms have low conversion rates for decentralized exchanges (DEX), with SunPump being 2.1%, and Pump.fun 1.4%.
SunPump is gaining ground on Pump.fun as the rivalry between them heats up. SunPump’s aggressive growth and strategies have made it a strong competitor.
SunPump’s new buyback/burn process could have a further impact on the competitive landscape and drive adoption.
This article SunPump community accepts 100% chain buyback and burning process first appeared on The ICD
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