Tron (TRX): What’s the purpose behind the coin burn?
Tron token migration is here and the community is celebrating its Independence Day. Previously, they announced that they would burn coins to celebrate the day.
What is Coin burn and why do they want to do it?
Coin burn is actually removing tokens from the total amount of supply. No matter how vague it sounds, the process, in reality, increases the value of the cryptocurrencies. It works something like this – when the coins will be burnt from the total supply, the number of coins will decrease but the demand will be the same. So, the decrease in supply and increase in demand will prompt the price to rise. It also encourages the investors to hodl the coins. Also, helps in preparing the coin for better technology.
Tron Foundation on their Medium page mentioned, “The amount of TRX at the beginning of mainnet launch will be reduced to 99,000,000,000TRX, and the remaining 33,251,807,524 TRX held by TRON foundation will stay locked until January 1th, 2020.” Reportedly, Sesameseed one of the Tron’s Super Representative candidates is the first community to issue the token and also burned the TRX token first.
After the token migration, the Tron Foundation will be sending the TRX token to an address from which they will become unrecoverable. According to Tron Foundation, “Coin burn encourages a fair distribution of cryptocurrency, helps to control inflation and reward token holders.”
Meanwhile, Tron is gearing up for its Super Representative elections which is to start on June 26, that is, in a few hours. After the successful completion of the election, 27 representatives will be elected out of the one million proponents. In future, the elected Super Representatives will play a major role in the governance structure of the firm. They’ll be the guardian of the Tron network and actively participate in validation of the network and calculation.
See Also: Tronics announces blockchain university, enrollment in fall 2018
Currently, TRX token migration is ongoing. A 12-hour-long live stream started at 10 am and is still going on. It’s live on Youtube, Facebook, Periscope, and Yizhibo, giving all the Super Representative candidates a platform and a medium for the community and stakeholders to receive the recent information. During the streaming, a small number of TRX will be handed out so that Tron community members could test the various features of the Tron MainNet.
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