Basics of Tron (Part 28) : Five reasons why Tron is the best (Part 3: Tron Token Circulation)
Intro
Intro
In the last two tutorials, I have discussed two excellent and unique features of the Tron blockchain that make Tron my favorite. In this series I have included a total of five topics. Today in the third part I discuss another important feature of token circulation.
Those of us who have read or understand a bit of economics know that the price of something is inextricably linked to demand and supply. You know that if a country's currency is printed at will then the value of that currency decreases i.e. inflation occurs. That means price falls if supply increases. If the supply is not enough, a liquidity crisis is created again. That is why in the currency system i.e. in the monetary policy it is always considered very important that the supply is adequate and fixed.
A block is created on the Tron blockchain every 3 seconds. Since one block is executed every three seconds, 160 + 16 i.e. 176 trons are generated (mined) every three seconds. Out of these 176 TRX generated, 160 are given as voting rewards and the remaining 16 are given as mining rewards i.e. for block production. By doing this, Tron is constantly being generated which we call circulation or mining.
But if this production was unlimited then this token would be of no importance to people because it is natural that if there is so much supply it will not have a price. That is why the supply has to be limited and the limit set in the Tron blockchain is very nice i.e. 100 billion Tron circulation. After that, there will be no more circulation, that is, when 100 billion will be completed, then this 100 billion will be traded among all and the price will increase a lot. It can be assumed naturally.
I think this circulation system of the Tron blockchain is great because it will stop at some point. In the case of the Bitcoin blockchain, there is a halving method, that is, after 2,10,000 blocks are created, that is, every four years, the mining reward is halved, and in this way, the mining reward will decrease a lot over time. A disadvantage in this case is that if the price of Bitcoin does not increase much then the miners will also lose their interest which is a big problem. It is natural that only miners will be interested in mining if the price of Bitcoin increases at the same rate as the mining reward is halved, otherwise they will not be interested. So unless the price of BTC increases exponentially on the Bitcoin blockchain, this problem will remain. But there is no chance for this to happen in the circulation process of Tron blockchain because block production will happen every three seconds and at the same time Tron will continue to circulate as block production and mining rewards until 100 billion Tron are circulated.
And for this nice system and having a certain limit of circulation I think Tron blockchain is a very nice blockchain. In the next two episodes, I will discuss with you two more excellent features of Tron. Thank you
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