thecryptobasic.com
Justin Sun, the founder of Tron blockchain, recently expressed admiration for the Shiba Inu burning mechanism.
This came during his announcement concerning a significant shift in how SunPump, the first meme platform on the Tron network, will handle its token burn process. In the post, Sun noted that the decision comes after extensive community discussions.
The SunPump community initially considered burning Liquidity Pool (LP) tokens, recognizing benefits such as increased token liquidity depth and regulatory friendliness. In this context, Justin Sun acknowledged that the practice was already effective for established meme coins like Shiba Inu.
Notably, in March, Shiba Inu’s layer-2 network, Shibarium, saw meme token burn campaigns, such as the liquidity pool burn by Sol Killer (DAMN). This mechanism also burned the Shibarium gas token BONE with each transaction and contributed to the deflationary trend of both tokens, enhancing their value by reducing supply.
Last month, the Shiba Inu development team unveiled an automated system for SHIB token burns. The move came after the team manually incinerated over 38 billion SHIB earlier this year.
SunPump Adopts a Different Approach
However, the SunPump community has adopted a different approach to its meme coin burns. They cited the complexity of the LP token burning process as a key challenge. Specifically, Justin Sun stated that many community members found the process difficult to understand, leading to potential confusion.
To address this issue, Sun announced that SunPump would abandon the LP token burning approach in favor of a 100% on-chain buyback and burn process.
He emphasized that this new method will be more transparent and easier for the community to verify. By recording all token burns directly on the blockchain, the process will eliminate the need for complicated explanations and allow users to easily track fund burns.
According to the announcement, the new on-chain buyback and burn process goes live immediately, setting a new standard for meme tokens on the Tron network.
Notably, the ongoing burn of the SUN meme token is trackable in real time via a dedicated portal. As of the latest records, over 315.76 million SUN tokens, valued at approximately $8,774,469, have been incinerated. Additionally, another 11 million SUN tokens, valued at around $304K, are slated for burning.
This ongoing trend is part of the Tron community’s effort to dominate the meme coin scene, potentially overtaking the Solana network, which has led since Q4 2023.
Within less than a month since Tron’s meme coin platform launched, several thousand meme coins have been introduced, generating significant revenue for Tron. Among the most prominent is Sundog, with a market cap exceeding $144 million as of today.