A lot of different crypto ecosystems are trying to build their own DeFi solutions. For TRON, this effort has been underway for a while. One of the latest ventures to launch is SUN, although it remains to be seen if it can gain traction.
What is SUN About?
Building something new in the DeFi space will not be easy. There are different options to explore, but there is no reason to jump the gun either. SUN will certainly be an interesting experiment, for a wide variety of reasons. It is a social experiment first and foremost, yet one that will help determine the future of TRON’s DeFi ecosystem.
At its core, SUN wants to become “Bitcoin on the TRON network”. A bit of an odd position to be in, to say the very least. While it is a community operated and open source project, that is as far as the comparison to Bitcoin will go. Labeling a smart contract as the world’s leading crypto asset is a bit of a stretch.
Genesis Mining Soon
To commemorate the launch of SUN, there will be a “Genesis Mining” event. Starting on September 2nd, it will not involve any hashpower like Bitcoin mining would. Instead, it is all about TRX holders contributing liquidity by moving it to the SUN smart contract address. One this is done, users will effectively begin generating SUN based on the amount of tokens in the pool.
What is remarkable is how all tokens will be returned to their owners after 14 days at no extra cost. This means no TRX can be lost, assuming the smart contract doesn’t contain any major issues. SUN will act as a governance token, and become part of the broader DeFi ecosystem as well.
Surprisingly, the number of SUN will be capped at 19,900,730, regardless of how much TRX is contributed to the contract. It is evident that users will compete for liquidity to gain as many tokens as possible.
September 16th is Crucial
Following the two-week Genesis Mining event, the real battle begins. Regular SUN mining will occur and yield 10% more tokens compared to regular periods. At this time, all other main TRON assets will be introduced to provide liquidity. This includes BTT, JST, WIN, USDJ, and TRC-20 USDT. Liquidity providers will earn mining rewards according to their stake.
It is the first step toward connecting the broader Tron DeFi ecosystem. With numerous projects launching, bridging the gaps is of the utmost importance. For SUN, it will create a lot of pressure to succeed. Even so, it is an important step in the right direction. No crypto ecosystem can afford to miss out on the decentralized finance craze.
No ICO or VC Involved
One thing some people seem to appreciate is how SUN has no premine, ICO, or VC involvement. It is something new, created out of thin air, designed to benefit the ecosystem. As such, one has to wonder what SUN’s real value will be. TRON’s recent project and token launches have been met with a lot of criticism. Moreover, the token values have not appreciated by all that much in recent months either.
TRX could pull a YFI here. No Premin, No ICO, No angel investor ? We love this kinda 5hit sir! Thank you.
— Corn Longer (@_BearSlayer_) August 31, 2020
One user even goes as far as claiming how SUN could be the next YFI. A gross overstatement, but the sentiment isn’t entirely abnormal. That said, there is a lot of hostility toward TRON and everything it stands for. It is not unlikely people will generate SUN to dump it on the market as quickly as possible. The coming weeks will certainly be interesting either way.