TRON’s founder Justin Sun has proposed a significant discussion surrounding the potential reduction of TRX block rewards, likening it to Bitcoin’s halving process.
In a recent statement, Sun highlighted that TRX is already a deflationary cryptocurrency, with an annual supply decrease of 1%. He emphasized that this positions TRX as “the only deflationary asset among major cryptocurrencies.”
Sun noted, “This discussion about TRX’s upcoming reduction in block rewards is worth paying attention to! Will TRX follow Bitcoin’s path and enter a halving cycle?” He further explained that just as Bitcoin’s network matured and its price rose, block rewards were progressively decreased through the halving mechanism. Sun suggested that TRON could adopt a similar approach, as the increasing price of TRX has enhanced rewards for block-producing nodes within the network.
The proposal to reduce TRX block rewards, submitted for community consideration, outlines several scenarios. For instance, reducing daily block rewards by 1 million TRX would increase the deflation rate by 50% to 1.5% per year. A more substantial reduction of 2 million TRX would double the deflation rate to 2%, creating effects comparable to Bitcoin’s halving.
The initiative also highlights various advantages, such as improved deflation, enhanced staking incentives, bolstered network security, and better economic alignment. The proposal asserts that timely adjustments to TRX block rewards are essential for promoting the sustainable development of the TRON network and ecosystem.
In contrast to Bitcoin’s automatic halving mechanism, which occurs roughly every four years, TRX’s proposed reward reduction would be determined through community governance. Sun has made it clear that the ultimate decision lies with the TRX community, underscoring that even with reduced rewards, the current incentives for network validators would still remain highly attractive.
