TRON
by BSCN
September 3, 2024
The community decided to implement a "100% on-chain buyback and burn process," moving away from the earlier plan to burn liquidity pool (LP) tokens.
Justin Sun, the founder of Tron, announced on Aug. 3 that the SunPump meme token platform community will implement a "100% on-chain buyback and burn process." This differs from the earlier plan to burn liquidity pool (LP) tokens, a method commonly used by other meme tokens like Shiba Inu (SHIB).
Regarding the issue of revenue buyback and burning for @sunpumpmeme , the community previously suggested burning liquidity LP tokens because this approach is used by mainstream meme tokens like SHIB.
— H.E. Justin Sun🌞孙宇晨(hiring) (@justinsuntron) September 3, 2024
Burning LP tokens has several advantages, including increasing token liquidity…
The new approach aims to provide transparency and simplicity, ensuring that all burn records are accessible on-chain.
“Burning LP tokens has several advantages, including increasing token liquidity depth, allowing the burned liquidity to still be utilized, and being more regulator-friendly,” Sun stated.
Sun revealed the community's decision through a post on X (formerly Twitter) on September 3. He noted that the initial suggestion to burn LP tokens was met with confusion, as the concept is complex and difficult for many community members to grasp.
After discussions, the community reached a consensus to adopt the on-chain buyback and burn process instead. The Tron Founder believes this method provides complete transparency and allows the community to verify all transactions on the blockchain.
The crypto community on X largely supported Sun's announcement. ChainsCard chairman Ben Todar spoke about the importance of transparency and simplicity for building community trust.
However, Todar also cautioned that focusing solely on buyback and burn might overlook the importance of liquidity. He pointed out that adding liquidity through LP tokens deepens the market and attracts larger investors, which is crucial for the growth and stability of the token.
Launched in August 2024, SunPump.meme is a meme coin generator that allows users to create their own tokens with minimal capital investment. The platform operates similarly to Solana's Pump.Fun, where users can issue new tokens for a small fee.
SunPump employs a unique bonding curve mechanism designed to ensure continuous liquidity for the tokens created on the platform.
When a project reaches 100% of its bonding curve at a value of $69,420, the smart contract automatically deposits around 100,000 TRX and 200 million tokens into the SunSwap V2 liquidity pool. This process is intended to provide constant liquidity for trading, reducing the risks associated with price volatility.
SunPump has seen considerable success since its launch. On August 21, Tron’s daily revenue reached a new all-time high of $3.84 million, driven by the SunPump memecoin generator. This achievement placed Tron ahead of established networks like Ethereum and Solana in terms of daily revenue.
The platform charges a creation fee of approximately 20 TRX (around $2.60) and imposes a 1% trading fee. These fees contribute to the platform’s sustainability and the liquidity pool. Since its launch, SunPump generated over 29.8 million TRX in revenue, according to Dune, valued at approximately $4.5 million, as of writing.
Justin Sun has been vocal about the future potential of SunPump.meme and the advantages it offers over similar platforms.
One of the platform's key strengths is its strategic partnership with the Poloniex cryptocurrency exchange. This partnership ensures that projects maintaining a daily trading volume of $1 million for three consecutive days qualify for listing on Poloniex.
According to Sun, Tron's robust stablecoin liquidity, driven by Tether's USDT, gives it an edge over other networks. He highlighted that Tron’s large stablecoin supply could lead to the emergence of several billion-dollar meme coins.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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