Tron founder Justin Sun announced that the SunPump meme token community has opted to implement a 100% onchain buyback and burn process, moving away from the previous plan to burn liquidity pool (LP) tokens.
Sun explained on X that the decision came after a community discussion highlighted confusion around the concept of burning LP tokens, which can be complex and lead to misunderstandings.
“Many community members don’t fully understand what LP token burning means, which can lead to misunderstandings,” Sun wrote.
Initially, the idea to burn LP tokens was inspired by other memecoins like Shiba Inu (SHIB), which used similar practices to increase “token liquidity depth” and make the burned liquidity more usable and regulator-friendly. However, due to the complexities involved, the community decided a 100% onchain buyback and burn would be a clearer approach.
Sun said the new process, which began on September 3, is “easier to verify,” more “straightforward,” and removes the need for further explanations. All funds will be recorded onchain for immutable verification, similar to practices by other entities, such as Binance, which conducts buybacks and burns of its BNB token.
SunPump surpassed its predecessor, the Solana-based Pump.fun, in daily revenue and activity. According to blockchain researcher Adam, SunPump saw 7,351 tokens launched and $585,000 in revenue within 24 hours, outperforming Pump.fun’s 6,701 tokens and $366,000 in revenue.
Earlier in August, a federal judge denied a request from the U.S. Securities and Exchange Commission (SEC) in its ongoing securities fraud lawsuit against the Tron Foundation and its founder, Justin Sun.
The case involves allegations that the Tron Foundation, along with the BitTorrent Foundation and Rainberry (formerly known as BitTorrent), violated securities laws.
The SEC alleges that the Chinese entrepreneur and his companies conspired to distribute billions of cryptoassets and artificially inflate trade volumes in order to lure in investors. The federal agency also claims that Sun manipulated the price of BitTorrent’s BTT token.
Tron’s defense argued that their main challenge focused on the third prong of the Howey test, which concerns the expectation of profits from the efforts of others. They claimed that the SEC’s request for an additional reply, or sur-reply, misrepresented their stance and was unwarranted.
