Because the Tron ecosystem continues to experience significant adoption, the community has successfully come to an agreement on the Sun Pump Protocol’s revenue allocation strategy introduced by the project’s founder Justin Sun. 

This agreement represents a serious turning point for the Tron network since community members agreed on methods to distribute the generated funds, guaranteeing the expansion of the project. It could also encourage the SunPump protocol‘s ongoing development and improve community relations.

Tron Users Make Daring Decision For Sun Pump Revenue Allocation

On Monday, Justin Sun, the founding father of the Tron network, sought the community’s decision on methods to allocate the revenue generated by the newly launched SunPump protocol, a meme coin deployer on the network.

The founder highlighted about 4 distinct areas during which the revenue could possibly be used, similar to repurchasing of SUN tokens, increasing liquidity on the SUN/TRX pool, completing the liquidity donations, and burning of LP tokens. Meanwhile, as of today, the community has reached a consensus, which illustrates the increasing attitude of cooperation in Tron’s ecosystem.

In keeping with the founder, following the talk, the community finally decided that implementing a 100% on-chain buyback and burn process directly could be a superior plan of action for the generated revenue. Since all fund burn records might be on-chain, this approach makes verification easier and doesn’t require any justifications.

The community’s decision to burn Liquidity Pool (LP) tokens is attributed to the indisputable fact that major mainstream meme tokens like Shiba Inu (SHIB) are already utilizing the approach, demonstrating the authenticity of the framework. “Personally, I feel this may be the higher approach, and it’s going to be implemented starting today,” Sun added.

He further identified several benefits of the strategy, which include being more regulator-friendly, increasing token liquidity depth, and allowing the burned liquidity to still be utilized. Nonetheless, just as a framework has its benefits, it also has its disadvantages.

Sun noted a downside risk to the approach but didn’t specify any particular reason attributable to its complexity. Because of this, he believes there could also be misconceptions because plenty of community members don’t fully understand what LP token burning means.

The Network Gas Revenue See Notable Spike In August

The Tron network has once more demonstrated its strong position within the industry as evidenced by the recent rise in overall gas revenue. In keeping with leading on-chain data tracker, Lookonchain, the network’s gas revenue witnessed a rise by over 46% in August.

Data from the tracker shows that the network surpassed other major networks like Ethereum, Solana, and Bitcoin, amongst others. While Tron saw a 46% rise, Ethereum, Bitcoin, and Solana saw an over 33%, 16%, and 48% decline respectively.

Featured image from X, chart from Tradingview.com