Earlier today, Tron founder Justin Sun said on X that SunPump has burnt and destroyed $8 million of SUN tokens, and there is still a $4 million destruction plan to be executed. He added that $SUN and $TRX holders will get an exclusive allocation soon.
The total burn amount is $8 million completed, with $4 million to go. https://t.co/ZyExPts79H
— H.E. Justin Sun🌞孙宇晨(hiring) (@justinsuntron) September 4, 2024
On September 3, Justin Sun had earlier talked on the SunPump’s revenue repurchase and destruction. He added that the community previously suggested following popular memecoin, SHIB’s strategy, and burning Liquidity Provider (LP) tokens.
Burning LP tokens reaps several advantages, such as increasing token liquidity depth, allowing the burned liquidity to still be utilized, and being more regulator-compliant. However, the negative side to it is that it is ‘complex’ which can lead to misunderstandings.
Sun said the community held several discussions and has finally agreed to directly implementing 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”, Sun added in his previous tweet.
The decision was hailed by several X users, however, some of them pointing out why focusing only on buyback and burn might sideline liquidity. For instance, Ben Todar, the Chairman of Chains Card argued that, focusing on adding more liquidity can help in price stability, yielding opportunities, robustness of network, attracting more whales, and is a tactic for defending against market manipulation.
As for the market value, $SUN is currently trading at $0.02875 after a slump of 9.37% in the past 24 hours, selling pressure being one of the factors behind the consistent drop.
Also Read: Sun Token Experiences Significant Price Drop
Source: https://www.cryptonewsz.com/justin-sun-8-million-sun-burnt-4-m-left/