According to Tron founder Justin Sun, the SunPump meme token is set to introduce a “100% on-chain buyback and burn” strategy. This significant shift comes after extensive discussions within the community, which prompted a reassessment of the initial plan focused on burning liquidity pool (LP) tokens.
In a recent update shared on X, Sun emphasized that the community's feedback played a vital role in this decision. He noted, "Many community members don’t fully grasp the implications of LP token burning, which can lead to misconceptions."
Understanding the Challenges of LP Token Burning
Sun acknowledged that while the burning of LP tokens—a tactic utilized by notable meme tokens such as Shiba Inu—can improve "token liquidity depth," it is a complex subject that many users find difficult to understand. He highlighted that although LP token burning can offer advantages, the intricacies involved could create confusion.
To resolve these concerns, the SunPump community has chosen a more straightforward and transparent solution: a fully on-chain buyback and burn mechanism. According to Sun, this method not only simplifies the process but also ensures that every transaction is immutably recorded for verification, removing the need for elaborate explanations.
Immediate Implementation of the New Strategy
The new buyback and burn approach is set to take effect immediately, representing a pivotal change in the token’s management strategy. Sun noted that this practice mirrors operations by other entities, such as Binance, which also conducts buyback and burn activities for its BNB token.
Interestingly, SunPump has recently shown stronger performance metrics compared to its predecessor Pump.fun, which is based on the Solana blockchain. Blockchain analyst Adam reported that SunPump issued 7,351 tokens and generated $585,000 in revenue in just 24 hours, surpassing Pump.fun, which managed 6,701 tokens and $366,000 in revenue.
Additionally, SunPump's launchpad has posted a higher "graduation" rate, with 1.98% of launched tokens being listed on Sunswap, Tron’s decentralized exchange, after meeting the necessary trading volume requirements. In sharp contrast, only 1.26% of tokens from Pump.fun have been listed on Raydium, the Solana exchange.
Justin Sun's Legal Triumph Against SEC
In a separate but noteworthy development, a New York District Court recently dismissed a motion from the U.S. Securities and Exchange Commission (SEC) that sought to undermine Justin Sun's defense in an ongoing case. The ruling, issued by Judge Edgardo Ramos, represents a setback for the SEC as it pursues its allegations against Sun and the Tron Foundation.
The SEC's case, initiated in March 2023, accuses Sun and his organization of unregistered securities offerings, manipulative trading practices, and unlawful promotion of crypto assets, specifically Tron (TRX) and BitTorrent (BTT) tokens. In April, Sun and his legal team sought to dismiss the case, contending that the SEC does not have jurisdiction over foreign digital asset transactions conducted on global platforms.
Following Sun's attempt to challenge the lawsuit, the SEC revised its filings in April, asserting that Sun had "traveled extensively" to the U.S. in connection with his activities for the Tron Foundation, the BitTorrent Foundation, and/or Rainberry.
