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.
In a Jan. 22 post on X, Sun detailed how changes in supply management, operational strategy, and fiscal policies could reshape the trajectory of the second-largest digital asset by market capitalization.
Sun’s proposal
Sun’s primary proposal involves halting the Ethereum Foundation’s regular ETH sales for at least three years. Instead of relying on asset liquidation for operational funding, he suggested leveraging income sources like staking yields, decentralized lending platforms, and stablecoin-backed loans.
Sun said this approach would support deflationary conditions and increase investor confidence.
Another key aspect of his plan includes imposing substantial taxes on layer-2 platforms. Sun estimates this approach could generate $5 billion annually to fund ETH repurchase and burning initiatives.
He wrote:
“All collected taxes will be used to repurchase ETH and burn it in a fully decentralized manner, period.”
Operationally, Sun proposed streamlining the Ethereum Foundation by reducing its workforce and retaining only 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. He proposed reducing node rewards and increasing fee burns to ensure the network remains deflationary while reinforcing 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.
He concluded:
“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.
The Ethereum Foundation has recently faced criticism for selling ETH to cover expenses, sparking calls for alternative funding strategies.
Meanwhile, rival blockchain networks like Solana are gaining traction due to their ability to attract more developers and new projects, thereby increasing pressure on Ethereum to innovate.
Internal governance issues have also become a focal point, with critics calling for changes within the Ethereum Foundation. Concerns about leadership effectiveness have fueled calls for greater transparency and accountability.
Mentioned in this article
Read the full article here
