Justin Sun Announces Major Tron Coin Burning, Over $800 Million TRX ERC20 Tokens
The very concept of a coin burn is controversial within the crypto space. Though some experts are convinced that the act of burning coins is an essential part of the process for maintaining a healthy ecosystem and a fairly-priced cryptocurrency, many others have expressed concerns that the action of burning a token represents the epitome of centralization, whereby the institution in charge of the burn makes a largely unilateral decision to try to hold onto a preferred price of their holdings.
Despite the ongoing argument within the larger community, the Tron Foundation has continued to make waves within the crypto space for the commonality of its constant coin burns. According to some sources, the months of June and July saw the burning of a massive 100 billion tokens from Tron, known as TRX tokens. The motivations for individual coin burnings, as well as the exact number of tokens taken out of circulation, varies from occasion to occasion. But according to the Tron Foundation earlier in 2018, the main goals behind the process include minimizing inflation, maximizing fairness in token distribution, and rewarding those who choose to “HODL” the coin.
The community is generally given some kind of say in the process of coin burnings, and many within the Tron fandom are generally supportive of the burn process, the concept having been a largely effective way to maintain price and reward loyal shareholders in the Tron Foundation and its coin. The community was responsible for the choice to burn USD $2 billion worth of the TRX tokens last month as well.
A Major New Burn
Justin Sun, CEO and founder of TRX and the Tron Foundation, announced yesterday that he has concluded a process to burn around USD $800 million in Tron tokens. He elaborated on the reasons for the burn, saying that it is similarly poised to try to maintain the stability of the ecosystem and fight the threat of inflation which becomes a problem for so many other ERC20 coins and their ecosystems.
— Justin Sun (@justinsuntron) November 1, 2018
In total, around half of the circulating supply of ERC-20 TRX has now been burnt by the foundation and its community. This was a problem for one user, who asked on Twitter if they had really burnt half of the overall circulating supply of the token. Someone else was quick to respond to the concerns, though, articulating that the burn only applied to the ERC-20 tokens, not the Tron coins. The former is largely “old and now useless,” which makes sense given the comments on recent coin burns by Tron officials.
The Tron Foundation has been working hard in recent months to expand operations and increase the health and efficiency of their network within the crypto space and larger evolving financial community. In particular, the organization has announced several new partnerships, including a new association with Binance, BitTorrent, and Baidu.
The recent coin burning is likely yet another facet of the organization’s efforts to expand its operations and maintain security of network and ecosystem amid a troubling time for all cryptos.