SunPump Meme Implements 100% On-Chain Buyback and Burn Process

• SunPumpMeme introduces a 100% on-chain buyback and burn process for transparency.
• Community debates liquidity vs. buyback strategies for token stability and growth.
• Experts suggest enhancing liquidity to attract larger investors and stabilize prices.

SunPump, the first meme coin platform on the Tron network, is shifting to a fully on-chain buyback and burn process for its SUN token starting September 3rd. This move aims to increase transparency by making all burn records verifiable on the blockchain.

Tron founder Justin Sun revealed this latest development on X, emphasizing that it reflects the community’s decision. Sun explained that while the traditional method of burning Liquidity Pool (LP) tokens was considered, it was ultimately deemed too complex for many community members to understand.

Although LP token burning—employed by other tokens like Shiba Inu (SHIB)—can boost liquidity and offer regulatory advantages, its complexity often leads to confusion. “This new method is easier to verify,” Sun stated.

The announcement has sparked discussions within the crypto community about the benefits and limitations of this new strategy. Ben Todar, a cryptocurrency analyst, praised the move for its clarity but emphasized the importance of not neglecting liquidity. “Focusing solely on buyback and burn might overlook another critical aspect for token growth and stability, which is liquidity,” Todar said. 

He explained that adding liquidity through LP tokens helps deepen the market and attracts larger investors, or ‘whales,’ who prefer tokens with high liquidity to avoid slippage and volatility.

Todar further noted that higher liquidity can help stabilize token prices, offer yield farming opportunities, and create a positive feedback loop of increased trading activity. “More liquidity can attract more investors, creating a more robust ecosystem,” he added.