All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Tron announced that it will unlock 33 billion TRX on January 1, 2020.
- The Tron Foundation is looking for a safe place for the emitted token. The community is concerned about a possible dump effect.
The Tron Foundation announced that on January 1, 2020, 33 trillion TRX will be unlocked, a total of approximately 440 million USD. The funds were blocked when the foundation, led by Justin Sun, left the Ethereum blockchain.
Survey to determine usage for the 33 billion TRX
At the launch of the Tron network, 99,000,000,000 TRX were issued. Additionally, 33,251,807,524 TRX were issued that could only be accessed by the Tron Foundation. The organization led by Sun decided to block the funds for the term that will expire on January 1st next year.
After the announcement, the Tron account conducted a survey to consult with the community about where the funds should go. Users were presented with 3 options: they could choose to invest the funds to increase the infrastructure and development of Tron, refreeze the tokens or burn them.
As it can be seen in the tweet below, 55% of the respondents chose to burn the tokens. Some members of the community thought that it would be better to invest the funds in Poloniex. In November it was known that Justin Sun invested in the exchange and it could be a good option to expand the services of the platform.
However, another group was concerned about the possibility of the funds being dumped on the market. This could negatively affect thr price of TRX. One user referred to Stellar Lumens’ burning of the supply this year and how this affected the price of XLM.
The user received the following response from Tron:
An instant burn will not be natural, and will negatively affect the tokenomics of #TRX. You are right, and a massive airdrop will be the same.
It’s best to implement consistent burns like we have already.
https://twitter.com/TronNews_/status/1211023464036999169
Tron is not decentralized, according to the POP Network
It is still necessary to wait to determine how the Tron Foundation will use the unlocked funds. However, depending on the decision and its outcome, the criticism of centralization that the Foundation has received in recent days could increase.
The POP Network is the most recent startup that accused Tron of centralization. Apparently, after a series of maneuvers the POP project was taken out of Tronscan.
The central reason for this kind of censorship was the threat that the POP product, “bittorrentx”, would pose to BitTorrent. An extension that could be an alternative to YouTube, Netflix and Spotify with a “crypto-invisible UX” and device-to-device streaming tool.
In addition, a Tron executive left the project in May 2019. Lucie Chen co-founder of the Tron Protocol (TRX) stated that Tron had become an extremely centralized project, contrary to the principles on which it was founded.
Tron’s price stands at $0.0134 USD with a very slight gain of 0.03% in the last 24 hours.
Follow us on Facebook and Twitter and don’t miss any hot news anymore! Do you like our price indices?
