Benchmarking Tencent: TRON Empowers Super Representatives

Place/Date: Singapore - August 10th, 2018 at 8:38 am UTC · 7 min read
Contact: Media Inquiries, Source: TRON

The more comprehensive and healthy the ecosystem is, the more trustworthy it is for users, which will further empower SRs to improve the system. Such ecosystem holds a promising future of development, just like the “forest” Tencent has grown for its ecosystem.

On July 26, Pinduoduo was listed on Nasdaq with an offering price of $19, which sets the market value of Pinduoduo at $24 billion. According to its previous prospectus, the trading volume of Pinduoduo were as high as 66.2 billion RMB, with over 300 million active users in the first quarter of 2018.

It only took Pinduoduo 3 years to become the “third pole” of China’s E-commerce industry. What helped Pinduoduo make such headway? The answer is Tencent’s empowerment.

The empowerment comes in two parts:

  • Funding empowerment. Public records show that Tencent invested $30 million and $100 million on Pinduoduo respectively in 2017; Tencent made another one-time investment of $1 billion on Pinduoduo’s pre-IPO financing in March, 2018.
  • Traffic empowerment. Tencent has shared its most valuable traffic with Pinduoduo. WeChat currently owns more than 1 billion users with a popular payment system, which allows Pinduoduo to quickly access the market with a low traffic cost.

In addition, Tencent and Pinduduo have been working together in areas including payment solutions, clouding services and user interaction.

The cooperation between the two parties creates a 3-year shortcut for Pinduoduo compared with Jack Ma and Liu Qiangdong. It is also a brilliant strategic move for Tencent to be involved in Alibaba’s home venue.

It brings win-win results.

Creating an Empowering Ecosystem

Pinduoduo is not the first company whose success benefits from Tencent’s empowerment, nor the last one. In the 2017 Tencent Global Partner Conference, Ma Huateng stated in his open letter that Tencent’s ecosystem has grown from a “big tree” to a “whole forest”, which is a result of Tencent’s empowerment.

Empowerment and building an ecosystem through empowerment is becoming the major business direction for traditional Internet industry. Industry giants like Tencent and Alibaba are building their own ecosystems around their key strengths, while other companies are looking to join certain ecosystem.

Only by empowerment can one company gain a foothold in a competitive market via the strength of the others; if this company can further utilize the opportunity, it may even skyrocket.

In the blockchain industry, TRON is the first to bring about the idea of “empowerment”. As the No. 1 public chain of cryptocurrency in terms of user address, TRON plans to empower the SRs with its strengths in user base, development technology and marketing strategy, as Tencent does to companies within its ecosystem with its edge in technology, traffic, data and marketing.

TRON, along with all the token holders and SRs, will build a vigorous and fast-growing ecosystem together.

The more comprehensive and healthy the ecosystem is, the more trustworthy it is for users, which will further empower SRs to improve the system. Such ecosystem holds a promising future of development, just like the “forest” Tencent has grown for its ecosystem.

Empowerment by the Popular Sovereignty of the Token

Different from the traditional Internet, in a decentralized blockchain, the subject of empowerment should be every token holder rather than a centralized organization.

“The popular sovereignty of the token, the natural rights of the token” was mentioned in Justin Sun’s open letter to the TRON community. In TRON, every token holder can empower the SRs with their tokens.

Every token matters, because it stands for decentralized power. To guarantee the implementation of the power, TRON has established a set of rules for its community members, so that they could use their power in a free, convenient and timely manner.

Information about SRs and real-time operation of the SR Election is available on the TRON Network for community members to check and vote easily. All community members may oversee and vote for SRs and SR candidates 24-7.

At present, most cryptocurrency communities are actually controlled by miners, founders and development teams instead of token holders. Token holders do not have management power, let alone the power to empower. TRON has initiated a new revolution to establish a self-governing ecosystem through the empowerment by tokens.

In the new ecosystem, SRs are elected by all token holders. The empowered SRs are first builders and protectors of the TRON Network. They provide computing and verification services for the network and are generously rewarded.

TRON’s protocol network generates 1 block per second. Each block provides a reward of 32 TRX, with a total of 1,009,152,000 TRX to 27 SRs per year. By conservative estimates, the SRs will receive a minimum annual reward of over 2 billion RMB. As TRX grows in a robust ecosystem, the SRs’ reward will multiply.

In addition to block generation revenue, other forms of revenue will also derive from the TRON ecosystem, which may eventually outgrow block generation.

SRs play an important role in TRON’s governance architecture, too. Since the MainNet launch, TRON has been co-governed by the community that is closely related to SRs, as well as the TRON Foundation.

In a decentralized ecosystem, SRs gain support from the community members with their ideas and abilities. They are empowered by the community members, and in turn represent and influence them. On a certain level, SRs represent the will of the community, which represents the voice and the governing power in the TRON ecosystem.

A Win-Win Ecosystem

The TRON ecosystem empowers SRs, SRs and SR candidates in turn bring their strength to the TRON ecosystem.

TRON SR SkyPeople, developer of the well-known game Final Blade, is set on taking over PokémonGo, which ranks 2nd in Korea. TRON SR GSC, the first social chain to reach a hundred million users, is dedicated to establishing a decentralized value-oriented social network with a focus on Mico, a world famous social platform. TRON SR is devoted to building a global game platform for blockchain and cryptocurrencies with the intention of become the industry standard.

TRON SR Node Capital, one of the first professional agencies investing in the blockchain industry, has made investments in many areas including news, cryptocurrencies as well as technology development and application. There are also AntPool, the world leading mining platform which has always topped global computing power, and RightBTC, the first global token exchange in Dubai and one of the most popular cryptocurrency exchanges in the world.

This is only part of TRON SRs. Up till now, there are over 100 SRs and SR candidates in the TRON ecosystem. Some of them have a large number of users, some are good at developing advanced technologies, some are rich in resources of the industry, and others are leading in vertical fields.

The SRs bring significant influence to the TRON ecosystem, and TRON, as a public chain with over 1 million user addresses and over 100 million active DApp users, empowers the SRs with its own strengths. Growing together, the two sides will establish an ecosystem with enormous power and potential under the oversight of the community members.

Just like Tencent, which has created a robust ecosystem to maintain its leading role in the Internet industry by choosing good partners, TRON elects outstanding SRs through the popular sovereignty of the token. By growing together with the SRs, TRON will establish a healthy and self-sufficient global ecosystem, which will bring endless possibilities for TRON itself, the SRs, and the community.

Just as Tencent is no longer just an instant messaging company, TRON is not merely a public chain, either.