🤔 What is Tron?
Tron is a smart contract blockchain that uses delegated proof of stake consensus mechanism.
It aims to overcome Etherium’s limitations(scalability trilemma).
Scalability trilemma was first described by Vitalik Buterin, the co-founder of Ethereum. It states that it is very difficult to develop a blockchain that has all the three features:
A developer can choose a maximum of 2 of the desired qualities.
Tron compromises decentralization to achieve higher scalability(2000 transactions per second) and speed(finalizes 3 blocks every 1 second).
💡 What role does TRONIX(TRX) token play ?
TRX is the native cryptocurrency of Tron blockchain. It is used for:
- Transaction fee: Users pay TRX tokens as transactions fees to include their transactions on the Tron blockchain.
- Validator rewards: Validators receive TRX tokens as rewards for building blocks.
📝 Origin of Tron
- The Tron foundation was established, in July 2017 in Singapore.
- Tron Foundation raised $70 million through an initial coin offering.
- Tron launched its protocol on Etherium. TRX tokens were launched as ERC 20 tokens.
- Tron launched its blockchain in May 2018.
- Testnet, Blockchain Explorer, and Web Wallet were launched.
- Acquisition BitTorrent in July 2018.
👴🏻 Justin sun - Founder
🤖How does it work ?
Tron consensus mechanism uses Delegated-proof-of-stake consensus in which 27 Super Representatives (SRs) produce blocks for the network.
A user needs to burn 9999 TRX tokens to apply to become a Super representative.
Rest of the TRX token holders vote to select 27 super representatives who will mine new blocks.
The Tron protocol generates one block every three seconds, with each block awarding 32 TRX to Super Representatives.
- Witness nodes are set up by super representatives and are mainly responsible for block production and proposal creation/voting.
- Full nodes provide APIs and broadcast transactions and blocks.
- Solidity nodes sync blocks from other Full Nodes and also provide indexable APIs.
The Tron blockchain routes information through three main layers. These include:
- The storage layer: Designed to segment the data stored on the blockchain (a record of its history), and the blockchain’s state data (the status of its smart contracts)
- The application layer: Used by developers to build applications and wallets powered by the Tron blockchain.
- The core layer: This layer processes instructions and send to the Tron Virtual Machine, where programs are executed.
🏛️ Governance model
Only Super representative accounts can propose and vote on changes to Tron protocol.
🤑 How much money does the project have for future development ?
- The project raised $70 million during ICO sale in 2017.
- The team holds 44.25% of the total TRX supply(100 billion).
😨 Risks and challenges
- Centralization: There are only 27 super validator nodes that mine and validate blocks, most of which are being run by the Tron team.
- Competition: There are many blockchain projects that achieve much higher scalability without compromising centralization.
TRX token had initial supply of 100 billion tokens. They were distributed as follows:
Transaction fees paid by users to process their transactions are burned.
Super validators receive a fixed block reward of 32 TRX per block(generated every 3 seconds). As a result, the approximate daily inflation is 1.38 million TRX and the approximate yearly inflation is over 500 million TRX.
Token’s price increases due to demand pressure.
Demand pressure on TRX will come from:
- Transaction fees: Users will acquire and pay TRX tokens to include their transactions in Tron blockchain.
- Super valiadtors: Users have to burn 9999 TRX tokens to apply to become Super representative.
Supply pressure on a token decreases its price.
Supply pressure on TRX will come from:
- Inflation: Daily inflation is 1.38 million TRX and approximate yearly inflation is over 500 million TRX, which is paid to super validators.
- Early investors and founder Justin Sun has publically admitted to dumping his TRX holding on retail and leaving the project.
🧐 Indicators to watch out for
- YouTube channel is growing:
- Twitter account is growing:
- Daily transaction volume:
- Total value locked:
- Active accounts are growing:
My opinion - Tron is a scam !
Any sensible investor with a working eyesight can see that Tron is a scam.
This is not the about page of Justing Sun but Tron project.
Resource page of Tron project is just founder’s images with celebrities.
Even the Defi app launched by the team on Tron is called “Just”.
The project has TRX price chart on the main home page.
If you can not see anything fishy in this tweet then crypto is not for you.
Do you think these celebrities have any idea about crypto? They are just taking money and fooling their fans.
Tron whitepaper was plagurarized.
The smallest unit of TRX is called SUN. 1 TRX = 1,000,000 SUN.
Justin Sun outright lied to his followers that they are partnering with Liverpool. Liverpool denied any such partnerships.
Information on his Wikipedia page is also counterfeit.
Read his Bio, initially, I thought he was being funny but he is not.
However, it seems to have been too late as the founder has already sold his TRX holdings and left the project.
😊 Do further research
You can continue your research by using following resources: