Tron And Bitcoin: Will A Block Reward Cut Boost TRX Price?

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TRON founder Justin Sun has revealed that the network might reduce the TRX block rewards due to TRX’s rising price, sparking a discussion in the cryptocurrency community.

Sun noted that this move is similar to Bitcoin’s halving mechanism, capturing the attention of investors who are wondering about the plan’s possible impact on traders.

Tron: Reducing Block Rewards

Sun shared, in a post on X, his thoughts on potentially implementing a reduction in the network’s reward scheme for its TRX.

He said that it is worth paying attention to the discussion about TRX’s upcoming reduction 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 explained.

The TRON founder said that 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.”

This discussion about TRX’s upcoming reduction in block rewards is worth paying attention to! Will TRX follow Bitcoin’s path and enter a halving cycle?

Here are my personal thoughts. As we all know, TRX is already in a deflationary state of 1% per year, making it the only…

— H.E. Justin Sun 🍌 (@justinsuntron) March 21, 2025

Following Bitcoin’s Path

In the post, Sun said that TRX might follow what happened to Bitcoin, saying, “Will TRX follow Bitcoin’s path and enter a halving cycle?”

He explained that the firstborn cryptocurrency followed a similar path, saying that once the BTC network grew, investors saw a gradual decrease in its block rewards.

TRX market cap currently at $21 billion. Chart: TradingView.com

“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.

Impact Of The Reduction

Sun also shared the possible impact of reducing TRX block rewards, giving two scenarios.

“If daily block rewards are reduced by 1 million TRX, the deflation rate would increase by 50%, reaching 1.5% per year,” he said.

On the other hand, he believes that if TRX is reduced by 2 million, the deflation rate would increase to 2% per year, “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 network has formally submitted on GitHub the proposed block rewards reduction.

“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 network stated in the proposal.

Among the benefits that can be gained from its implementation are better deflation, increased staking incentives, strengthened network security, and improved economic alignment.

“Timely adjustments to TRX block rewards can better promote the healthy and sustainable development of the TRON network and TRON ecosystem,” the network added.

Featured image from Gemini Imagen, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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