Justin Sun recently announced in a new X post that SunPump will be implementing a token burn process with 100% on-chain buyback.
According to the X post, the community’s previous intentions were to burn LP tokens. However, after a community discussion, a decision to implement the buyback and burn process was finalized.
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.
Burning LP tokens has several advantages, including increasing token liquidity…
— H.E. Justin Sun🌞孙宇晨(hiring) (@justinsuntron) September 3, 2024
“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.” – Justin Sun on X
LP token burning is a complex process
The inspiration to burn LP tokens was taken from other memecoins like Shiba Inu, priced at $0.00001331 per token at press time.
According to Sun, the increase of “token liquidity depth” is a major advantage of LP token burning. As a result of this, the liquidity will remain “more regulator-friendly” and usable.
However, due to the complexities of this process, Justin Sun believes that 100% on-chain buyback is an ideal approach.
Justin Sun has mentioned that the buyback and burn process will start today, on 3rd September. As this process is implemented, all the burned funds will get recorded on the blockchain. This will allow immutable verification.
SunPump flipped Pump.fun in revenue in late August
On 21st August, SunPump flipped Pump.fun in activity and daily revenue. On 21st August, the Tron network generated a revenue of $3.48 million within 24 hours. A day before that, the revenue was $3.38 million, based on data by DefiLlama.
Due to the increasing revenue, many memecoins launched on the platform went on to high valuations. There were reports of one trader turning $1,000 into $750,000 on SunWukong. On the other hand, coins like SunDog went up to $270 million in valuation.