Justin Sun, the visionary behind Tron, has put forth an ambitious strategy aimed at propelling Ethereum’s (ETH) price to $10,000. Sun’s approach includes halting the sale of ETH, imposing taxes on Layer 2 solutions, and directing efforts towards enhancing Layer 1 developments. By implementing these measures, he hopes to fortify Ethereum’s position within the cryptocurrency landscape and promote sustained growth.
What Are Sun’s Main Proposals?
On January 22, Sun disclosed his proposals on social media, suggesting that the Ethereum Foundation suspend ETH sales for a period of three years. He argues that this halt could stabilize supply and foster a deflationary market model, ultimately supporting ETH’s price.
How Will Layer 2 Taxes Impact the Market?
Sun’s plan aims to leverage AAVE lending, staking yields, and stablecoin borrowings to manage operational expenses. He also plans to implement a tax on Layer 2 solutions, targeting an annual revenue of at least $5 billion, which would be utilized for buying back and burning ETH to enhance its deflationary structure.
- Halting ETH sales could stabilize the market.
- Layer 2 taxes might generate significant revenue for ETH buybacks.
- Sun’s actions could influence market dynamics with substantial ETH deposits.
Recent market activity has seen Ethereum’s price fluctuate between $3,265 and $3,366, with a notable trading volume of $26 billion. Despite a steady state in futures positions, major investors, or ‘whales’, have been actively accumulating ETH. Justin Sun’s strategies may well play a critical role in shaping the future trajectory of Ethereum’s price and its overall market standing.
