Justin Sun Implements 100% On-Chain Buyback and Burn Mechanism for SunPump

The SunPump community changed its mind about an LP burning mechanism, instead opting for an on-chain buyback and burn mechanism, which Justin Sun agreed to.

After hearing the SunPump community out, Justin Sun has decided to implement a 100% on-chain buyback and burn mechanism for the SUN token, memecoin generator SunPump’s native asset. While the initial decision was to integrate an LP token burn mechanism, the community decided against it for various reasons, pushing Sun to choose the alternate method.

“After discussion, the community agreed that a better approach would be to directly implement a 100% on-chain buyback and burn process,” the Tron founder announced on X. “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 also mentioned that he personally believed this would be a better approach, and it would be implemented immediately on September 3. As opposed to SunPump’s adoption of the mechanism, projects like Shiba Inu utilize the LP token burn mechanism, which pushed the community to pick it in the first place. However, it could be hard to understand due to its complexity.

“Many community members don’t fully understand what LP token burning means, which can lead to misunderstandings,” Sun stated. Nonetheless, he highlighted the advantages of LP token burning, including “increasing token liquidity depth, allowing the burned liquidity to still be utilized, and being more regulator-friendly.”

SunPump Overtook Pump.fun Metrics in August

SunPump was created as a Tron-based alternative to Solana’s Pump.fun, which gained tremendous interest as users deployed millions of tokens as interest in memecoins skyrocketed this year. Despite coming months after its competitor, SunPump managed to overtake the number of tokens it gave rise to and revenues on a single day in August. It witnessed 7,351 tokens being launched on August 21, as it made $585,000 in revenue. On that same day, Pump.fun saw users launch 6,701 tokens, with the platform generating $366,000 in revenue.

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