Justin Sun Proposes TRX Block Reward Cut, Drawing Halving Parallels with BTC
22.03.2025 17:38
TRON founder Justin Sun has sparked renewed interest in TRX by proposing a reduction in block rewards, echoing the halving mechanism that Bitcoin has employed over the years. According to Sun, TRX, which is already deflationary with a 1% annual decrease in supply, could see its deflation rate increase if block rewards are cut further. The proposal, detailed on GitHub as 'Reduce TRX block rewards #738', outlines several scenarios where a daily reduction of either 1 million or 2 million TRX in block rewards would boost the annual deflation rate to 1.5% or 2% respectively. Sun suggests that this change could bring benefits such as improved network security, enhanced staking incentives, and overall better economic alignment within the TRON ecosystem. By drawing a parallel with Bitcoin’s halving events — where block rewards are systematically reduced as the network matures and the price increases — Sun has opened a dialogue about whether TRX could follow a similar path, with the final decision resting on community governance. This move is seen as a strategic adjustment to promote the healthy and sustainable development of the TRON network.
The proposal to reduce TRX block rewards is likely viewed as bullish. The increase in deflationary pressure could drive scarcity and potentially lead to price appreciation, supported by enhanced staking rewards and network security. In the short term, governance debates may cause volatility, but long-term prospects appear positive if the community approves the changes, drawing on historical parallels with BTC's halving events.
Bitcoin is mentioned as a benchmark for halving mechanics, which historically have boosted its price. However, since there is no change or announcement directly affecting BTC, its price dynamics are expected to remain neutral in this context, serving more as a comparative example rather than a catalyst.
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