Justin Sun, the founder of the Tron network, has unveiled an ambitious strategy to transform Ethereum’s ecosystem and push its price to $10,000.
Sun explained in a post on X dated Jan. 22, how changes to supply management, operations strategy and fiscal policies can reshape X’s trajectory.
Sun’s proposal
Sun’s primary proposal involves halting the Ethereum Foundation’s regular ETH sales for at least three years. Sun suggested relying less on the asset sale to finance operations and instead leveraging other income sources such as stablecoin-backed loan, decentralized lending platforms or staking returns.
Sun stated that the approach will support deflationary situations and increase investor’s confidence.
A key part of the plan is to impose substantial taxes on Layer-2 platforms. Sun estimated that this strategy could raise $5 billion per year to finance ETH repurchase initiatives and burn.
“He wrote:
“All collected taxes will be used to repurchase ETH and burn it in a fully decentralized manner, period.”
Sun has proposed an operational streamlining of the Ethereum Foundation, reducing the workforce to only retain top talent. He believes this measure will enhance efficiency and focus resources on Ethereum’s core Layer 1 development, prioritizing scalability, security, and adoption.
Additionally, Sun plans to revise Ethereum’s rewards system. Sun proposed to reduce node rewards while increasing the fee burn to maintain a deflationary network and reinforce long-term value.
Sun expressed confidence that these changes could drive Ethereum’s price to $4,500 in the short term and $10,000 over time.
The conclusion:
“With these decisive actions, ETH is poised to break $4,500 within the first week, setting the foundation for long-term success.”
Ethereum Foundation Issues
Sun’s proposals emerge amid heightened scrutiny of Ethereum’s leadership and operations.
Ethereum has been criticized recently for using ETH as a funding strategy.
In the meantime, competing blockchain networks such as Solana gain traction because of their ability to draw more developers and create new projects. They are increasing pressure on Ethereum by innovating.
The Ethereum Foundation’s internal governance has also been a hot topic, as critics have called for modifications. Calls for more transparency and accountability have been fueled by concerns over leadership effectiveness.
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