Tron Founder Justin Sun Proposed Reducing Block Rewards to Increase Deflation

Seeing the active prioritization and adaptation of Bitcoin, Justin Sun supports the proposal for taking the best practices that have lifted it to the top

Tron founder Justin Sun has suggested that the community discuss reducing block rewards to increase deflation, especially amid TRX’s recent price rise.

Details On Justin Sun’s Proposal Regarding Reducing the Reward for Tron Blocks

Seeing the active prioritization and adaptation of Bitcoin, which is recognized for its advantages in several aspects, especially in the domain of deflationary economics, which is crucial for the long-term health and stability of cryptocurrencies, Sun supports the proposal for taking the best practices that have lifted it to the top and improving Tron’s deflationary mechanisms, especially amid TRX’s recent price rise.

Specifically, he said:

“Due to TRX’s rising price, the rewards for block-producing nodes across the network have increased significantly, so a moderate reduction could be considered.”

In his rather detailed proposal, he highlights 4 key objectives that can be achieved by such changes:

And yet, among other things, he insists on deflation in particular, emphasizing the potential and outlining the prospects, which one has to admit sound quite impressive:

“If (daily block rewards are) reduced by 2 million TRX, the deflation rate would rise to 2% per year, effectively doubling the deflation rate, with an impact on TRX cycles comparable to Bitcoin’s halving.”

And while it offers specific mechanisms for doing so, in particular proponents of reducing the number of TRX validators receive an increase in TRX value by increasing the level of deflation. But still, it does not specify the specific amount of the reward reduction, which also creates some ambiguity.

“It is proposed to adjust these two network parameters to reduce the TRX production rates. Everyone is welcome to make specific suggestions and participate in discussion on the setting of reasonable parameter values.”

Conclusion

An interesting initiative designed to increase the value of Tron, especially since the problem of inflation in the economy is one of the most central topics right now.

On the other hand, the ratio of additional rewards to the size of their overall reduction is still unclear – whether this will motivate the community or vice versa. But this is a fundamental mechanism for the ecosystem, and the changes will affect all Tron users without exception, so we will keep an eye on this decision and its details.