Binance Becomes Highest-Ranked Tron Super Rep, Opens TRX Blockchain Staking Option
With close to three-fifths of the voting rights as a Tron super representative, Binance exchange’s domineering influence over the blockchain is causing an uproar from the Tron community. Does Binance have too much influence on the 12th largest crypto?
Tron Becomes Largest Tron SR with 60% Votes
It’s 1st October which means Binance, largest crypto exchange in daily volumes traded, will start its highly anticipated support for Tron (TRX) tokens staking reward system. The big date coincides with the exchange also becoming the largest Tron Super Representative (Tron SR) – staking over 12 billion TRX tokens and acquiring 60% of all the votes.
Binance staking address becomes largest Tron SR with 59.5% of the votes. (Source: TronScan)
With Binance effectively controlling the Tron SR vote, a number of Tronics (Tron followers) remain discontent with the latest power shift in voting decisions. The huge power Binance holds over TRON blockchains development and block reward system is causing unrest across the cryptocurrency’s community (some seeing it as centralization of the blockchain).
Understanding Tronics frustrations
Some days prior to Binance’s launch of the TRX staking rewards system, Justin Sun, the head of Tron Foundation and a close friend to Binance CEO Changpeng Zhao (CZ), proposed changes to the TRX reward system. Essentially, he proposes a reduction of the block reward from 32 TRX to 16 TRX per block while the highest 127 delegates (by vote) will share the remaining 160 TRX produced per block.
The change is seen as a manipulative tactic to increase rewards made to Binance. How exactly? While this is subject to change, currently, only one SR is liable to increased payouts from the proposal – Binance. The huge domineering influence by Binance is causing dissent among members of the Tronics family who want to oppose the proposal.
According to the Tron SR protocol, the proposal requires at least two thirds of the total vote to pass.
A catalyst to Tron’s revival
Tron has had a torrid year as its price tumbled over 20% since January, Justin’s postponed lunch with Warren Buffet didn’t help TRX’s cause either. However, the latest voting power takeover by Binance is set to serve as a catalyst to boost the price, tweeted Misha Lederman, COO, Beatzcoin, third largest Tron SR.
Misha said Binance locking out 12 billion TRX tokens essentially takes about a sixth of the token’s supply out of circulation which may prove to be a catalyst for TRX’s growth.