Tron [TRX] users latest demand to cap the coin at $100 billion was not acceptable to the founder of this virtual coin, who instead returned with a ‘changing reward and coin burn’ mechanism as hardcap solution.
Taking to Twitter, TRX, Founder, and CEO Justin Sun said that TRX burn and the Reward Mechanism will be changing based on the #TRON network development and in synch with our community to ensure a #decentralized, #autonomous and #democratic TRON ecosystem.”
The new offering by the CEO of Tron Foundation, Justin Sun is contrary to expectations community which wanted a hardcap of $100 million.
Tronix community worried
It has been intensely discussed among the Tron community that there would be an oversupply issue in the next 2 years as TRX supply would likely exceed 100 billion mark. The result would be disastrous in terms of price, as supply and demand is imbalanced resulting in price of TRX plunging.
Statistical speculations have identified over $99 billion TRX Supply, $1 billion in TRX Burnt, Frozen Tokens exceeding $33 billion, while 66 billion is in circulation supply.
According to media sources, the tokens that have been frozen valued at $33 billion will release on 1st January 2021. This technical aspect will be handled by The Tron Independent Group [TIG]. Additionally, the 27 Genesis Representatives shall resign as a brand new 27 Super Representative have seen been elected.
No source code limit for 100 billion TR
Ratifying the technical aspects, one of the key developers on this project – Rovak, claims that there is no source code in the currently running software for Trons which limits to 100 billion TRX. Accordingly,
“Line 1367 increases the produced blocks for a SR by 1. Right now there is no check against the 100B ceiling. Justin will need to burn the coins locked up by the Tron Foundation to keep the total supply below 100B. Total supply will hit 100B in around 2 years if no action is taken.”
Rovak has been part of the community discussions on this topic and has responded to the 100 limit in the source code by stating that the oversupply does not impact prices. According to Rovak,
“There are so many things that can happen in the next few years that an increase in the total supply maybe doesn’t even matter. I’m sure Justin will come up with a solution that is beneficial to TRON hodlers.”
Under the present source code scheme the number of TRX that can be generated is infinite. At the current rate of circulation at approximately 65 billion, number of TRX has climbed past the 100 billion mark in just 2 years.
The latter development is of great concern to the user community. They have expressed on Twitter that traditional economic principles of demand and supply will show that supply which will outgrow demand at faster pace and will ensure price is lower in terms of long as well as “hard supply limit is not set.”
A tron user community poll on Twitter on this subject saw 90 percent of then voting for a cap.