Key Takeaways:
- SunPump switches to 100% onchain buyback, abandoning LP token burning.
- New process ensures all transactions are recorded on the blockchain.
- SunPump outperforms Pump.fun in token launches and revenue.
Justin Sun, the founder of Tron, announced that the SunPump meme coin community decided to replace LP token burning with a 100% onchain buyback and burn process. The community discussed the complexities and misunderstandings surrounding LP token burning and made this change on September 3.
Primarily, according to Sun’s post on X, the community found LP token burning difficult to understand, leading to potential misunderstandings. Sun stated,
“Many community members don’t fully understand what LP token burning means, which can lead to misunderstandings.”
SunPump Chooses Onchain Buyback Over Complex LP Token Burning
The SunPump community initially considered following other popular meme coins like Shiba Inu (SHIB) by burning LP tokens. LP token burning can increase “token liquidity depth” while keeping the burned liquidity usable, making it more aligned with regulatory expectations. However, due to the complexity, Sun proposed a shift to a 100% onchain buyback and burn process. He maintained that this process would be more straightforward and transparent.
The onchain buyback and burn process records all transactions on the blockchain, allowing for easy verification. This method addresses the challenges of LP token burning while ensuring transparency for the SunPump community.
Coin Adopts Transparent Onchain Buyback and Burn Process Starting September 3
Starting from September 3, SunPump coin will fully implement the onchain buyback and burn process. Accordingly, this approach simplifies the process and provides transparency, addressing the concerns raised by the community. Sun emphasized that this method is “easier to verify” and “more straightforward” than LP token burning.
Notably, the onchain buyback and burn process ensures that every fund used for the buyback is recorded on the blockchain, providing immutable verification. Correspondingly, this method is similar to practices by other major players like Binance, which uses a portion of its profits to buy back and burn its BNB tokens.
SunPump Dominates Pump.fun with Higher Token Launches and Revenue
On August 21, SunPump surpassed its Solana-based predecessor, Pump.fun, in daily revenue and activity. According to blockchain researcher Adam, SunPump launched 7,351 tokens and generated $585,000 in revenue. Comparatively, Pump.fun launched 6,701 tokens and earned $366,000 in revenue.
Above all, the onchain buyback and burn process will now be a core part of SunPump’s strategy, reflecting the community’s preference for transparency and straightforward processes.
