SunPump launchpad on the TRON network will begin redeeming and burning SUN coins

What’s new? Justin Sun, the founder of the TRON blockchain with TRX native token and head of centralized crypto exchanges (CEXs) HTX and Poloniex, has announced changes to the SunPump meme token launchpad. He clarified that in agreement with the community, starting September 3, the platform’s proceeds will be used to redeem and burn SUN coins.

Source: X.com

Cryptocurrency burning is the process of removing a certain number of tokens from circulation, after which they become permanently inaccessible. Often burning is carried out in order to increase the rate of an asset or prevent it from inflation. Burning can be done by sending tokens to a wallet without a private key, by conducting a hard fork, using special software, or using algorithms that destroy some of the funds during transactions.

What else is known? SunPump allows anyone to launch their own meme token in a few clicks and for a low price. SunPump uses a fair launch model, where all coins are released at the same time, with no lock-in period for certain groups of investors.

It was launched in mid-August and quickly gained popularity, overtaking its main competitor PumpFun on the Solana network in terms of revenue, number of assets issued, and the percentage of successful listings on leading ecosystem decentralized exchanges (DEXs).

Justin Sun is actively promoting the platform and positioning TRON as a meme token ecosystem, noting that the success of the new strategy will boost blockchain revenue to $4 billion in the next 12 months. This, in turn, will increase the amount of TRX being burned, bolstering the value of the asset.

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Sun’s original proposal envisioned that SunPump’s revenues would be converted using SunSwap’s version 2 DEX, and then directed to a dedicated address to ensure that liquidity could not be withdrawn.

Source: X.com

The amount of funds allocated was to be determined based on SunPump’s revenue. The funds would then be used to redeem SUN coins and added to the SUN/TRX liquidity pool, with liquidity provider (LP) tokens issued by the exchange for adding liquidity being destroyed.

According to Sun, this approach increases compliance, allows for the continuous accumulation of liquidity, and stabilizes the price of SUN, driving the asset’s growth along with the TRON network.

Sun clarified that SunPump receives revenue in TRX, and previously all SunPump revenue was destroyed by burning those coins.

Source: X.com

Already on September 3, the entrepreneur announced changes to the proposed model:

“Burning LP tokens has several advantages, including increasing token liquidity depth, allowing the burned liquidity to still be utilized, and being more regulator-friendly. However, there is a downside: it’s complicated to explain. Many community members don’t fully understand what LP token burning means, which can lead to misunderstandings. After discussion, the community agreed that a better approach would be to directly implement a 100% on-chain buyback and burn process. 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. Personally, I believe this might be the better approach, and it will be implemented starting today.”

On the back of SunPump’s success in late August, TRX became the most trending asset in the crypto space and reached its highest level since April 2021 at $0,163. TRX is currently ranked tenth in the overall cryptocurrency ranking with a capitalization of over $13,2 billion and is trading at $0,1523, having lost 2,8% over the day. The weekly drop was 5,4%, but the asset has added 41% since the beginning of the year.

As for SUN, it is in the 179th place of the overall ranking with a capitalization of over $309 million and is trading at $0,0315, having lost 7,7% over the day. In two weeks, the growth amounted to 161%.

Earlier, experts from the venture capital arm of market maker DWF Labs conducted a comparison of launchpads. They found that SunSwap still leads in terms of the percentage of successful listings — 2,1% on SunSwap versus 1,3% for PumpFun on the Raydium exchange — as well as in terms of fees and payments to creators for listings.

Source: X.com