DailySun
Justin Sun, the creator of TRON, has shared his thoughts on the potential for decreasing TRX block rewards, making a comparison to Bitcoin’s halving events.
In a recent tweet, Sun conveyed his idea of instituting a reduction in TRON (TRX) rewards. He noted that the cryptocurrency already exhibits a deflationary nature, decreasing its supply by 1% each year.
Sun stated that this attribute positions TRX as “the only deflationary asset among significant cryptocurrencies.”
Sun commented, “This discussion about TRX’s impending reduction in block rewards deserves consideration! Will TRX embark on a journey similar to Bitcoin and enter a halving phase?” He posted on X, comparing the possible change to an evolution similar to Bitcoin’s development.
He explained that as Bitcoin’s (BTC) network matured and its price rose, block rewards were systematically reduced through the halving process. He suggested that TRON could adopt a similar pathway, as the rising TRX price has increased rewards for the block-producing nodes in the network.
TRX block reward reduction proposal evaluates multiple scenarios
The proposal, officially submitted on GitHub as “Reduce TRX block rewards #738,” outlines a variety of possible scenarios. A reduction of 1 million TRX in daily block rewards could boost the deflation rate by 50%, increasing it to 1.5% annually. In contrast, a 2 million TRX reduction would result in a deflation rate of 2% per year, producing an effect “similar to Bitcoin’s halving.”
The GitHub proposal also emphasizes numerous benefits of implementing such changes. These advantages include improved deflation, enhanced incentives for staking, strengthened network security, and better economic alignment. The proposal states, “Timely adjustments to TRX block rewards can more effectively foster the healthy and sustainable growth of the TRON network and ecosystem.”
Unlike Bitcoin’s automatic halving process that cuts rewards by 50% roughly every four years, the suggested reduction for TRX would be executed through community governance. “Ultimately, this decision rests with the TRX community!” Sun emphasized.
He noted that even with a decrease in block rewards, “the ongoing incentives for network validators remain very appealing.”
