Justin Sun, the TRON founder, has shared his thoughts on the potential for reducing TRX block rewards, drawing parallels to Bitcoin’s halving process.
In a recent tweet, Sun introduced his concept of implementing a reward decrease for TRON (TRX). He emphasized that the cryptocurrency is already deflationary, experiencing an annual supply reduction of 1%.
According to Sun, this quality positions TRX as “the only deflationary asset among leading cryptocurrencies.”
Sun stated, “This discussion about the impending reduction in TRX block rewards deserves attention! Will TRX embark on a journey similar to Bitcoin and enter a halving cycle?” He mentioned on X, comparing the possible adjustment to an evolution similar to Bitcoin’s trajectory.
He explained that as Bitcoin’s (BTC) network progressed and its price increased, block rewards were systematically reduced through the halving mechanism. He suggested that TRON might take a comparable path, noting that the rise in TRX price has amplified rewards for block-producing nodes in the network.
Proposal for TRX block reward reduction takes various scenarios into account
The proposal, officially put forth on GitHub as “Reduce TRX block rewards #738,” outlines several potential scenarios. A cut of 1 million TRX in daily block rewards could raise the deflation rate by 50%, increasing it to 1.5% per year. In contrast, a reduction of 2 million TRX would double the deflation rate to 2% annually, creating an impact “akin to Bitcoin’s halving.”
The GitHub proposal also points out various benefits of such changes, including improved deflation, enhanced staking rewards, strengthened network security, and better economic alignment. The proposal states, “Timely modifications to TRX block rewards can more effectively encourage the healthy and sustainable advancement of the TRON network and ecosystem.”
Unlike Bitcoin’s automatic halving mechanism, which reduces rewards by 50% roughly every four years, the proposed TRX reduction would be managed through community governance. “Ultimately, this decision is up to the TRX community!” Sun emphasized.
He noted that even with a reduction in block rewards, “the ongoing incentives for network validators remain highly appealing.”
