
H.E. Justin Sun 🍌|Mar 21, 2025 18:12
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?
Here are my personal thoughts. As we all know, TRX is already in a deflationary state of 1% per year, making it the only deflationary asset among major cryptocurrencies.
However, due to TRX's rising price, the rewards for block-producing nodes across the network have increased significantly, so a moderate reduction could be considered.
Bitcoin followed a similar path:
As the Bitcoin network grew, block rewards gradually decreased. In the early days, higher rewards were necessary for bootstrapping the network. However, as Bitcoin's price surged, block rewards were lowered, and the halving cycle played a crucial role in Bitcoin's long-term sustainability—aligning with Satoshi Nakamoto's original vision.
Potential impact of TRX block reward reduction:
If daily block rewards are reduced by 1 million TRX, the deflation rate would increase by 50%, reaching 1.5% per year.
If reduced by 2 million TRX, the deflation rate would rise to 2% per year, effectively doubling the deflation rate, with an impact on TRX cycles comparable to Bitcoin’s halving.
Even with a block reward reduction, the current incentives for network validators remain highly attractive.
Ultimately, this decision rests with the TRX community!
https://github.com/tronprotocol/tips/issues/738
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