Will a block award reward the TRX price?

by Barry Solano
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This article is also available in Spanish.

The founder of Tron, Justin Sun, revealed that the network could reduce the rewards of TRX blocks due to the TRX upward pricetriggering a discussion in the cryptocurrency community.

Sun noted that this decision is similar to the mechanism of half of Bitcoin, capturing the attention of investors who wonder about the possible impact of the plan on traders.

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Tron: Reduction of block rewards

Sun shared, in an article on X, his reflections on the potential implementation of a reduction In the network reward plan for its TRX.

He said it was worth paying the discussion on the next TRX reduction in block rewards.

“Here are my personal thoughts. As we all know, TRX is already in a deflationary state of 1% per year, which makes it the only deflationary asset among the great cryptocurrencies, “he explained.

The founder of Tron said that due to the increase in the TRX prize, “the rewards for the nodes producing blocks through the network have increased significantly, so that a moderate reduction could be taken into account.”

Follow the Bitcoin path

In the post, Sun said that TRX could follow what happened BitcoinSaying: “Will TRX follow the Bitcoin path and will enter a cycle in half?”

He explained that the first born cryptocurrency followed a similar path, saying that once the BTC network has increased, investors have seen a progressive decrease in its Block the awards.

TRX TRX CAP TRX currently at $ 21 billion. Chart: TradingView.com

“At the beginning, higher awards were necessary for Bootstrap the network. However, as the price of Bitcoin jumped, the block rewards have been lowered and the half cycle played a crucial role in the long -term sustainability of Bitcoin – aligning with Satoshi Nakamoto“S Original Vision,” added the founder.

Impact of reduction

Sun also shared the possible impact of reducing TRX block rewards, giving two scenarios.

“If the daily awards of blocks are reduced by 1 million TRX, the deflation rate would increase by 50%, reaching 1.5% per year,” he said.

On the other hand, it estimates that if TRX is reduced by 2 million, the deflation rate would increase to 2% per year, “effectively doubling the deflation rate, with an impact on TRX cycles comparable to the reduction of half of Bitcoin”.

“Even with a reduction in block award, current incentives for network validators remain very attractive. In the end, this decision belongs to the TRX community,” he added.

The founder revealed that the network had officially subjected to GitHub the reduction of the proposed block rewards.

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“The adjustment aims to create a more balanced dynamic of the supply encouraging increased participation of users in the featured. Tron networkAnd promote the healthy and sustainable development of the Tron ecosystem, “said the network in the proposal.

Among the advantages that can be drawn from its implementation is a better deflation, an increase in standby incentives, reinforced security of networks and an improvement in economic alignment.

“The timely adjustments to the TRX block awards can better promote the healthy and sustainable development of the Tron network and the Tron ecosystem,” added the network.

Star image of Gemini Imagen, tradingView graphic



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