Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
The Tron network is set to release 33 billion tokens from the time-locked storage on January 1, 2020.
The current supply and demand proportion on the TRX market shows that the unlocking a new portion of tokens may serve a surprise to the loyal TRX holders.
The TRON community was celebrating independence from the Ethereum blockchain back in 2018. As a symbol of the powerful event, the great coin burn happened. TRON had destroyed 1 billion tokens, which was $50 million at the time. People behind Ripple also used such a trick to bump the price by locking out 55 million of the XRP tokens.
The TRON’s initial supply was 100 billion coins, where 33.25 billion were a property of the non-profit Tron Foundation. After the burn, the Foundation said that it will put the 33.25 billion coins to 1000 addresses within the Mainnet’s treasury.
As the funds will be locked till 1 January 2020, the drama increase as we approach the New Year’s eve:
“Considering the safety of digital assets, Tron Foundation locked 33,251,807,424 TRX(the original amount is 34,251,807,524 TRX, 1 billion TRX were burnt when mainnet launch), TRX was locked in 1000 addresses of TRON mainnet, in this way, it can help reduce the risk of losing digital assets.”
How the TRON Foundation Manages Money?
Justin Sun, the CEO of the Tron Foundation, is a business shark who made lots of moves to promote Tron and make it a better protocol. Sun is the author of both the blockchain and the organization.
The procedure of the coin lock helps in defending the young system against evil players. In case something bad was going to happen with the ecosystem, the TRON Foundation could use the money to help out investors. Also, the economics rule says that the less of the coins are there in the circulation, the more each coin is worth. The price of TRX is less than one cent now, and will additional monetary supply appearing on the market again… who knows where the price will head?
The trick with locking a certain part of the initial coin supply is good when you wish to convince traders that the asset is not worthless. The creator itself stores tons of coins and even locks them up for a few years – such a situation can be a marketing trick. However, people don’t think about what will happen in the future. When the time will come to unlock that monetary supply again, the huge massive of coins should start working. At least the money could appear in the open markets in a slow manner or re-invested in the developers.