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TRON founder Justin Solar has revealed that the community may scale back the TRX block rewards resulting from TRX’s rising value, sparking a dialogue within the cryptocurrency neighborhood.
Solar famous that this transfer is just like Bitcoin’s halving mechanism, capturing the eye of traders who’re questioning concerning the plan’s doable affect on merchants.
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Tron: Lowering Block Rewards
Solar shared, in a submit on X, his ideas on doubtlessly implementing a discount within the community’s reward scheme for its TRX.
He mentioned that it’s price taking note of the dialogue about TRX’s upcoming discount in block rewards.
“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,” he defined.
The TRON founder mentioned that resulting from TRX’s rising value, “the rewards for block-producing nodes across the network have increased significantly, so a moderate reduction could be considered.”
This dialogue about TRX’s upcoming discount in block rewards is price taking note of! Will TRX observe Bitcoin’s path and enter a halving cycle?
Listed below are my private ideas. As everyone knows, TRX is already in a deflationary state of 1% per 12 months, making it the one…
— H.E. Justin Solar 🍌 (@justinsuntron) March 21, 2025
Following Bitcoin’s Path
Within the submit, Solar mentioned that TRX may observe what occurred to Bitcoin, saying, “Will TRX follow Bitcoin’s path and enter a halving cycle?”
He defined that the firstborn cryptocurrency adopted an analogous path, saying that after the BTC community grew, traders noticed a gradual lower in its block rewards.
“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,” the founder added.
Influence Of The Discount
Solar additionally shared the doable affect of lowering TRX block rewards, giving two situations.
“If daily block rewards are reduced by 1 million TRX, the deflation rate would increase by 50%, reaching 1.5% per year,” he mentioned.
Alternatively, he believes that if TRX is decreased by 2 million, the deflation fee would improve to 2% per 12 months, “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,” he added.
The founder revealed that the community has formally submitted on GitHub the proposed block rewards discount.
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“The adjustment aims to create a more balanced supply-demand dynamic encouraging 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 the TRON ecosystem,” the community said within the proposal.
Among the many advantages that may be gained from its implementation are higher deflation, elevated staking incentives, strengthened community safety, and improved financial alignment.
“Timely adjustments to TRX block rewards can better promote the healthy and sustainable development of the TRON network and TRON ecosystem,” the community added.
Featured picture from Gemini Imagen, chart from TradingView
