
H.E. Justin Sun 🍌|Mar 21, 2025 18:10
This discussion about TRX's upcoming production cuts is worth paying attention to! Will TRX start a halving cycle like Bitcoin?
I would like to express my personal opinion. As is well known, TRX is already experiencing an annual deflation rate of 1%, making it the only mainstream cryptocurrency experiencing deflation.
However, due to the gradual increase in TRX prices, the rewards for nodes across the entire network that produce blocks have increased too much, and can be moderately reduced.
The Bitcoin network has also developed in this way, as the network grows and expands, the rewards for block nodes are decreasing. In the early stages, it is understandable that the block reward was relatively high for cold start. However, after the significant increase in Bitcoin price in the later stage, the block reward decreased and halved, which greatly helped the cycle of Bitcoin. This is in line with the spirit of Bitcoin designed by Satoshi Nakamoto.
From the example of TRX, even if we assume a daily reduction of 1 million TRX rewards, the deflation of TRX can increase by 50%, reaching 1.5% per year. If we reduce 2 million TRX, the deflation will increase by 2% per year, and the deflation will rise by 100%. Its cyclical impact on TRX is no less than halving Bitcoin.
Even if TRX reduces production, the current rewards are still very tempting for all nodes in the network.
The real decision is left to the TRX community to make.
https://(github.com)/tronprotocol/tips/issues/738
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