The post Justin Sun Backs TRX Halving, Says TRON Validators Will Still Profit appeared on BitcoinEthereumNews.com.

The TRON ecosystem is currently deliberating on a proposal to reduce the rate of TRX emissions, aiming to introduce a Bitcoin-like halving mechanism. Justin Sun emphasizes that validators are not solely reliant on block rewards, they also generate income through transaction fees and various network activities. Justin Sun, the founder of the TRON blockchain, recently addressed community discussions regarding a proposal to reduce TRX block rewards. This aims to slow the rate at which new TRX tokens enter circulation, implementing a Bitcoin-like halving mechanism designed to control inflation and potentially increase the asset’s long-term value. In a post on X, Sun highlighted that TRX already operates under a deflationary model, with an annual reduction of 1%, making it the only major cryptocurrency with built-in deflation. However, as TRX’s price has surged, the rewards for block-producing nodes have also grown significantly, prompting discussions about the need for a moderate reduction in block rewards. “Bitcoin followed a similar path,” Sun explained. “In its early days, higher rewards were necessary to bootstrap the network. But as Bitcoin’s value increased, block rewards were gradually reduced, and the halving cycle became a key factor in its long-term sustainability, aligning with Satoshi Nakamoto’s original vision.” Potential Impact of TRX Block Reward Reduction Sun outlined how different levels of block reward reduction could impact TRON’s economic model, emphasizing the potential benefits of a more deflationary structure. A daily reduction of 1 million TRX would raise the deflation rate to 1.5% per year, a 50% increase from the current rate, while a larger cut of 2 million TRX per day would double the deflation rate to 2% per year, making TRX’s emission model even more aligned with Bitcoin’s halving cycle.  Despite concerns about lower block rewards, Sun reassured the community that validators would still remain highly incentivized due…

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Filed under: News - @ March 22, 2025 3:18 pm