On June 10, 2025, at 11:07:09 (UTC+8), the TRX reduction proposal has officially entered the voting phase, with 18 votes in favor so far. If it passes smoothly, it will fundamentally change the release rhythm and value logic of TRX from a mechanical level!
📉 1. Deflation intensified: Daily supply sharply reduced, release significantly tightened
Let’s first look at a set of core data on the reduction:
Block rewards have decreased from 16 TRX to 8 TRX, a drop of up to 50%;
Voting rewards have been reduced from 160 TRX to 128 TRX, a decrease of 20%;
The total block reward has decreased from 176 TRX to 136 TRX, a reduction of 22.7%.
Currently, the daily generation of TRX remains at 5.06 million pieces. If the reduction proposal passes, the daily TRX generated will further decrease by 1.15 million pieces. Since it is widely used for resource purchases (energy, bandwidth) in the TRON ecosystem, the daily destruction amount has recently stabilized at around 7 million pieces. This means that, without a reduction, the daily net deflation is nearly 2 million TRX; if the reduction passes, it may drive daily net destruction to exceed 3 million pieces, building a stronger 'deflationary moat.'
⛓ 2. Mechanism comparison with BTC: Is halving the prelude to value appreciation?
Looking back at the development history of Bitcoin, each halving has become a powerful driving force for pushing up the coin price, taking it to new heights repeatedly.
The first halving in 2012 initiated the leap from $10 to $1,200;
The second halving in 2016 marked the journey from $400 to $20,000;
After the third halving in 2020, BTC surged to a historic high of $69,000.
Although TRX and BTC differ in consensus mechanisms and uses, the market logic of 'increased scarcity → supply-demand rebalancing → price reevaluation' is common. This proactive reduction mechanism for TRX may be one of the strategies imitating BTC's 'deflationary minting of scarcity' and could mark the beginning of future institutionalized reductions (e.g., once every N years).
In other words, this is not just a change in the reward mechanism, but possibly an attempt by the TRON ecosystem to reconstruct its long-term value logic, which will affect the operational efficiency of the entire TRON ecosystem, the token economic model, as well as investor confidence, price trends, and the governance structure of the network.
📈 3. High-frequency on-chain usage will amplify the scarcity effect
As the core network for global stablecoin trading, the TRON chain occupies an important position in the cryptocurrency field. TRX is not a dormant asset, but rather the core native token of the TRON network, widely and frequently used for:
❶ Stablecoin (e.g., USDT-TRC20) transfer fee deduction;
❷ Acquire resources (energy, bandwidth) to support DApp usage;
❸ Staking votes to participate in Super Representative (SR) elections;
❹ Used in various DeFi protocols for collateral, lending, liquidity provision, and other scenarios.
These are all high-frequency usage scenarios, indicating a continuous and stable demand for TRX. As the reduction in supply leads to scarcity, this will quickly manifest in trading activities, especially during phases of active stablecoin trading and rapid TVL growth. This scarcity logic will act like a magnifying glass on market perception, triggering a price reevaluation.
🗳 4. Ecological tier chain reaction: Governance, revenue, and Staking reevaluation
This proposal not only affects the inflation rate but will also bring a series of chain reactions to the entire TRON ecological structure:
✅ On the node level:
The reduction in rewards for Super Representatives (SR) and candidate nodes means their operating profits shrink, which may prompt nodes to accelerate productization operations and optimize services to gain more votes.
✅ On the voter level:
The reduction in voting rewards means that holders' willingness to vote may fluctuate; at the same time, it will encourage more people to seek new revenue growth points through participation in DeFi, Staking, and other forms, promoting the redistribution of capital liquidity.
✅ On the DeFi protocol level:
The value logic of TRX as collateral may change; lending, collateralizing stablecoins, and other products may need to readjust liquidation parameters; scarcity logic may prompt certain projects to introduce lock-up mechanisms to stabilize liquidity. In short, this reduction is not just about changes in reward data, but also about the reconstruction of ecological governance focus.
🔚 5. Conclusion: The reduction is not the end, but the starting point of a new era
The TRX reduction proposal is currently being voted on, but its implications are already very clear:
Supply decline will strengthen deflationary expectations;
The high-frequency trading ecosystem will amplify the scarcity logic;
Value anchors may be re-established, and investment logic will subsequently upgrade;
In the longer term, TRON may follow a Bitcoin-like cyclical deflationary path.
📌 The strategic intent behind this proposal is to accelerate TRX’s deflation, endowing it with stronger value storage logic and anti-inflation potential. Whether you are a long-term holder, an on-chain developer, or a DeFi participant, you should pay close attention to the progress of this proposal. Because what it affects is not just the numbers of block rewards, but also the long-term value reevaluation path of TRX.
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