Justin Sun Supports TRON Proposal to Reduce Block Rewards to Increase Deflationary Pressure, Similar to Bitcoin Halving ⋆ ZyCrypto
The post Justin Sun Supports TRON Proposal to Reduce Block Rewards to Increase Deflationary Pressure, Similar to Bitcoin Halving ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement     TRON may reduce TRX block rewards, creating an economic model similar to Bitcoin’s halving to counter inflation’s effects and provide long-term value for TRON holders. The proposal is currently being discussed amongst TRON developers and traders. Justin Sun, TRON founder, suggests reducing block rewards could further reduce inflation, and higher prices would offset the new costs. The move would drastically change TRON’s economic model, adding extra functionality akin to Bitcoin’s original design. The proposal suggests reducing block rewards and balancing the economy of TRON so that users are encouraged to participate in staking. This would reduce the dilution of token value, which results from overproduction of TRX, a phenomenon that occurred frequently during the early stages of the token. However, this may need to be balanced to allow for better supply-demand dynamics. TRON plans to transition from inflation to deflation to align the structure of its block rewards with the token’s maturity. It needed inflation in the early stages of the project but may need more deflation now that the token is mature and people are seeking an inflation-proof asset like gold or Bitcoin. Justin Sun claims TRON is in a deflationary state of 1% per year, making it one of the only major cryptocurrencies with this feature. He also claims that higher TRX prices offset the reduction in block rewards. Therefore, given the token’s deflationary nature, a further reduction in block rewards wouldn’t hurt and wouldn’t have to be too much. “This proposal suggests,” wrote Jamestepforward, TRON developer, “reducing the TRX block rewards. The adjustment aims to create a more balanced supply-demand dynamic that encourages increased user participation in staking. This will benefit all stakeholders, ensure the TRX block rewards consistent with the maturity of the TRON network, and promote the healthy and sustainable development of…
Filed under: News - @ March 24, 2025 8:28 pm