Justin Sun Backs TRON's Block Reward Cut to Amplify Deflationary Force

Monday 24th of March 2025 15:33:30

JUSTIN SUN BACKS TRON PROPOSAL TO REDUCE BLOCK REWARDS, BOOST DEFlationARY PRESSURE

In a move that could have significant implications for the cryptocurrency market, Justin Sun, the CEO of Tron, has thrown his support behind a proposal to reduce block rewards on the Tron network. The proposal, which is designed to increase deflationary pressure on the network, is similar to the halving mechanism used by Bitcoin.

According to reports, the proposal would see the block reward on Tron reduced from its current level of 50 TRX to 25 TRX. This reduction would be implemented over a period of time, with the block reward decreasing by 50% every 210,000 blocks.

In a tweet announcing his support for the proposal, Justin Sun explained that the goal of the reduction is to increase deflationary pressure on the network, which he believes will help to maintain the value of TRX. "By reducing the block reward, we can create a more sustainable and deflationary environment for Tron," he wrote.

The proposal has been met with a mixed reaction from the Tron community, with some users expressing concerns about the potential impact on the network's mining ecosystem. However, many others have welcomed the move, seeing it as a necessary step to ensure the long-term health and stability of the network.

The reduction in block rewards is not the only measure that Tron is considering to increase deflationary pressure on the network. The network is also exploring the use of a proof-of-stake (PoS) consensus algorithm, which is designed to be more energy-efficient and less vulnerable to centralization than the current proof-of-work (PoW) algorithm used by Tron.

The move by Tron to reduce block rewards and increase deflationary pressure is likely to be closely watched by the wider cryptocurrency community. If successful, it could pave the way for other networks to adopt similar measures, which could have significant implications for the overall health and stability of the cryptocurrency market.