SunPump Unveils 100% On-Chain Buyback and Burn Strategy

In response to community feedback, SunPump has adopted a new 100% on-chain buyback and burn strategy, moving away from its earlier plan to burn liquidity pool (LP) tokens. The decision was prompted by confusion surrounding the original LP token burning process, which was inspired by similar practices in popular memecoins like Shiba Inu. The new approach, which takes effect from 3rd September, is designed to be more transparent and straightforward, ensuring that all transactions are recorded on-chain for clear, immutable documentation.

The buyback and burn strategy involves purchasing tokens from the market and then permanently removing them from circulation. This process is similar to strategies employed by major cryptocurrency platforms like Binance, which buys back and burns its BNB tokens from its profits. SunPump's shift to this method is intended to provide the community with a clearer understanding of the token management process without requiring additional explanations.

SunPump has also seen significant growth, outperforming its Solana-based predecessor, Pump.fun, in terms of daily revenue and activity. According to blockchain researcher Adam, SunPump generated $585,000 in revenue and created 7,351 new tokens within a 24-hour period, surpassing Pump.fun’s 6,701 new tokens and $366,000 in revenue over the same timeframe.

Conclusion

SunPump’s adoption of the on-chain buyback and burn strategy reflects its commitment to transparency and effective token management. By listening to its community and simplifying its processes, SunPump continues to position itself as a strong competitor in the cryptocurrency market.