It seems as if the TRON team has found yet another way of scoring some brownie points with its customer base. Although the project is still in the early stages of adoption, there will be a coin burning of 1 billion TRX which will take place on June 25, effectively reducing the company’s total token supply.
Another Interesting Development For TRON
One thing most people seemingly agree upon is how most ICOs issue too many tokens. In the case of TRON, the maximum supply is 100 billion TRX which when compared to Bitcoin’s 21 million, seems ginormous especially when considering how over 33.25 billion tokens are still owed by the TRON Foundation.
Several key details have been revealed in this regard. First of all, a total of 1 billion TRX will be removed from the total supply through a process known as burning. This means the tokens will be sent to an address of which no one has the private key, effectively rendering the balance unspendable.
It is the first step towards celebrating the launch of the TRON main net. Until recently, all TRX tokens were issued on the Ethereum blockchain. That was only a temporary measure, as the native TRX blockchain is coming to fruition. As such, all existing ERC20 tokens will need to be exchanged to the TRON20 version through over 30 supporting exchanges.
In regards to this latest move, the TRON Foundation also made an announcement. The tokens controlled by this entity will remain locked until January 1st of 2020. That in itself is another peculiar development worth keeping an eye on. It is evident this will bring a lot of positive attention to this project moving forward. Whether or not it will impact the price of TRX remains to be seen.
It is not the first time an altcoin has decided to burn off a portion of its total supply. However, in most cases, that is not for the sum $50m or more. It is a very unexpected turn of events for TRON, although one that also makes a lot of sense. The coin simply has too steep of a supply, and this frees up some pressure on the overall market as well.
None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.