TRON founder Justin Sun has suggested reducing TRX block rewards, comparing it to Bitcoin's reward-cutting mechanism.
Proposal for Rewards Reduction
Recently, Justin Sun shared his thoughts on the possibility of reducing block rewards for TRON (TRX). He pointed out that TRX is already a deflationary asset, with a yearly supply decrease of 1%, distinguishing it from other major cryptocurrencies.
Parallels with Bitcoin's System
Sun noted that, similar to Bitcoin, it may be beneficial for TRON to follow a rewards reduction cycle. He explained that as TRON's network matures and the TRX price rises, a rewards reduction could be an evolutionary step similar to Bitcoin's development, where block rewards are gradually reduced.
Potential Outcomes and Community Role
The proposal, submitted on GitHub as 'Reduce TRX block rewards #738,' outlines several scenarios. Reducing 1 million TRX in daily rewards could increase the deflation rate to 1.5% per year, while a 2 million TRX reduction would double it to 2%. Sun emphasized that such changes could benefit the network's strength and staking incentives. These adjustments would be made through TRX community governance, highlighting TRON's approach compared to Bitcoin's automatic halving.
According to Justin Sun, the discussion of TRON's block reward reduction deserves attention, as it could foster healthier and more sustainable development of the TRON network and ecosystem.
