Tron’s SunPump Adopts On-Chain Buyback Amid Justin Sun Push

Tron meme coin launchpad SunPump has implemented a 100% on-chain buyback and burn process, reflecting Justin Sun’s commitment to enhancing the blockchain’s profitability.

This move is part of a broader strategy by the Tron ecosystem to strengthen SunPump’s market position amid increasing competition in the meme coin space.

SunPump Introduces 100% Buyback Model

Tron founder Justin Sun announced the new development on X (formerly Twitter), highlighting the community’s involvement in the decision. According to Sun, the community suggested burning liquidity pool (LP) tokens. This method commonly used by popular projects like Shiba Inu.

Sun outlined several benefits of token burning, such as increased token liquidity depth, usable burned liquidity, and enhanced compliance. However, he also pointed out challenges, including the difficulty in explaining the process and potential misunderstandings within the community.

To address these issues, Sun explained that a buy-back model would be more effective, citing its ease of verification. This approach offers simplicity, with on-chain data readily available to record the fund burn, ensuring transparency and straightforwardness.

“After discussion, the community agreed that a better approach would be to directly implement a 100% on-chain buyback and burn process. This method is easier to verify, as all fund burn records will be on-chain, making it straightforward and eliminating the need for any explanations,” Sun explained.

Read more: What Is TRON (TRX) and How Does It Work?

Notably, the 100% buyback model is being implemented immediately, with SunPump now adopting a strategy similar to that used by Binance and other entities, which use part of their profits to buy back and burn tokens. However, some in the community are calling for a broader approach.

Ben Todar, founder and chairman of Chainscard, cautioned that focusing solely on buyback and burn could neglect the importance of liquidity, a crucial factor for token growth and stability.

“Adding liquidity, especially through LP tokens, is not just about providing depth to the market but also about attracting larger investors or ‘whales’,” Todar wrote.

This latest development adds to the series of updates from Justin Sun aimed at boosting the hype around SunPump. As BeInCrypto reported, other initiatives include fee reductions, energy cap enhancements, and plans for a non-fungible token (NFT) project.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Despite Sun’s continued efforts to promote SunPump, the crypto market remains aware of the potential competition from Solana’s Pump.fun. While SunPump surpassed Pump.fun in daily revenue and activity on August 21, Solana’s launchpad still benefits from its first-mover advantage, evident in the number of tokens deployed on the platform.