TRX Potential to Mirror BTC's Path Discussed by Justin Sun: Block Reward Reduction

Justin Sun, the founder of TRON, has expressed his views on the possible decrease of TRX block rewards, likening it to Bitcoin's halving mechanism.

In a recent tweet, Sun shared his thoughts about TRON's (TRX) potential reward reduction. He pointed out that the cryptocurrency is already deflationary, with a 1% annual decrease in supply.

This makes TRX "the sole deflationary asset among major cryptocurrencies," according to Sun.

"This conversation about TRX's upcoming block reward reduction is intriguing! Could TRX follow Bitcoin's lead and enter a halving cycle?" Sun wrote on [X]. He also likened the possible change to an evolution akin to Bitcoin's development.

Sun explained that as Bitcoin's (BTC) network grew and its price rose, block rewards were gradually lowered through the halving mechanism. He proposed that TRON could follow a similar trajectory, noting that the rising TRX price has increased rewards for nodes producing blocks across the network.

The suggestion, formally submitted on GitHub as "Reduce TRX block rewards #738," outlines several possible scenarios. A daily reduction of 1 million TRX in block rewards would raise the deflation rate by 50% to 1.5% per year. Simultaneously, a 2 million TRX reduction would double the deflation rate to 2% annually, creating an effect "comparable to Bitcoin's halving."

The GitHub proposal also lists multiple advantages of implementing such modifications. These include improved deflation, increased staking incentives, enhanced network security, and better economic alignment. "Well-timed adjustments to TRX block rewards can better promote the healthy and sustainable development of the TRON network and TRON ecosystem," the proposal states.

Unlike Bitcoin's automated halving mechanism that cuts rewards by 50% approximately every four years, TRX's proposed reduction would be implemented through community governance. "Ultimately, this decision lies with the TRX community!" Sun emphasized.

Sun noted that even with reduced block rewards, "the current incentives for network validators remain highly attractive."