- Tron founder Justin Sun has proposed bold strategies to push Ethereum’s price to $10,000, including halting ETH sales, taxing layer-2 platforms to fund token buybacks, and streamlining the Ethereum Foundation’s operations.
- His plan focuses on creating a deflationary ecosystem, enhancing scalability, and addressing governance issues to maintain Ethereum’s competitive edge.
Justin Sun, the founder of the Tron network, has presented a provocative strategy to propel Ethereum to new heights, targeting a potential price of $10,000. His vision includes significant changes to Ethereum’s fiscal policies, supply management, and operational structure, aiming to create a more deflationary and investor-friendly ecosystem.
Halting ETH Sales and Leveraging Staking Yields
One of Sun’s core proposals is to stop the Ethereum Foundation’s regular ETH sales for at least three years. Instead of liquidating assets for funding, he suggests turning to alternative income sources such as staking yields, decentralized lending platforms, and stablecoin-backed loans. This approach, according to Sun, would not only stabilize Ethereum’s supply but also boost investor confidence by fostering deflationary growth.
Taxing Layer-2 Platforms for Ecosystem Growth
Sun’s plan also includes a controversial move: imposing taxes on layer-2 platforms. He estimates this could generate $5 billion annually, which would be directed toward repurchasing and burning ETH. By reducing the circulating supply, this strategy aims to enhance the token’s scarcity and long-term value. As Sun put it, “All collected taxes will be used to repurchase ETH and burn it in a fully decentralized manner.”
Streamlining the Ethereum Foundation
Operational efficiency is another cornerstone of Sun’s proposal. He advocates for a leaner Ethereum Foundation by reducing its workforce and focusing on retaining only top-tier talent. This measure, he argues, would sharpen Ethereum’s focus on its Layer 1 development, prioritizing scalability, security, and broader adoption.
Additionally, Sun suggests revising Ethereum’s rewards system. By decreasing node rewards and increasing fee burns, the network could further ensure deflationary conditions, reinforcing Ethereum’s value proposition.
Challenges and Opportunities
Sun’s proposals come at a time when the Ethereum Foundation faces criticism for its current funding strategies and governance. Meanwhile, rival blockchains like Solana are gaining traction, drawing developers and projects away from Ethereum. Internal calls for greater transparency and accountability within the Ethereum Foundation add further complexity to the situation.
A Bold Prediction
Sun confidently predicts that his proposed changes could push Ethereum’s price to $4,500 in the short term, with the potential to hit $10,000 over time. Whether or not these proposals gain traction, they spotlight the ongoing challenges and opportunities within Ethereum’s ecosystem.
As Ethereum continues to face competition and internal scrutiny, bold ideas like Sun’s could pave the way for its next chapter—or spark heated debates about the best path forward.