The founder of TRON, Justin Sun, has expressed his views on the idea of reducing TRX block rewards, drawing comparisons to Bitcoin’s halving events.
In a recent tweet, Sun discussed the possibility of decreasing rewards for Tron (TRX), mentioning that the cryptocurrency is already deflationary, with its supply diminishing by 1% each year.
According to Sun, this positions TRX as “the only deflationary asset among significant cryptocurrencies.”
Sun tweeted, “This conversation surrounding the impending reduction of TRX block rewards is definitely one to watch! Will TRX mimic Bitcoin’s trajectory and enter a halving cycle?” He likened the prospective adjustment to an evolution akin to Bitcoin’s progression.
Sun elaborated that as Bitcoin’s (BTC) network matured and its value grew, block rewards were systematically decreased via the halving process. He proposed that TRON could embark on a similar journey, noting that the rising price of TRX has boosted rewards for the network’s block-producing nodes.
Proposal for TRX block reward reduction includes various scenarios
The proposal, officially presented on GitHub as “Reduce TRX block rewards #738,” outlines several possible scenarios. For instance, a reduction of 1 million TRX in daily block rewards would enhance the deflation rate by 50% to 1.5% annually. In contrast, a reduction of 2 million TRX would double the deflation rate to 2% each year, leading to effects “similar to Bitcoin’s halving.”
This GitHub proposal also highlights multiple advantages of enacting these changes, such as improved deflation, greater staking incentives, enhanced network security, and better economic alignment. “Adjustments to TRX block rewards at the right time can effectively foster the healthy and sustainable growth of the TRON network and ecosystem,” the document states.
Unlike Bitcoin’s automatic halving system, which reduces rewards by 50% approximately every four years, the proposed TRX changes would be instituted through community governance. “In the end, it’s up to the TRX community to decide!” Sun underscored.
Sun pointed out that even with the reduction in block rewards, “the current rewards for network validators remain very appealing.”