Cryptocurrency development teams are always trying to increase the value of their crypto assets using best practices. One of the methods of increasing the price of digital currencies and improving the fundamental parameters is token burning. This method has become very popular among cryptocurrency users. In this regard, the TRON network (TRON) pursues the same goal with the Sozi TRON token. In this article, we are going to answer the question, what is Tron and how and with what purpose do Tron developers burn Tron digital currency (TRX) tokens?
What is meant by token burning?
In order to be able to get to know the concept of Tron token burning; First, we need to have a comprehensive understanding of the term token burning. In the world of digital currencies, the cryptocurrency network for this serious token burning program is Tron. Tron Burning has already reduced a significant portion of the TRX coin in circulation.
What is Tron digital currency?
Tronics digital currency with the abbreviation TRX, native token Blockchain is Tron, which aims to create a Decentralized network Created to share entertainment and gaming information with the world. Tron network users, who are mainly artists and celebrities, can directly communicate with their contacts and share their video and audio information with the help of this network. The advantage of using this network is that in Tron’s decentralized platform, they no longer need to comply with some frameworks of intermediary companies.
trx digital currency is currently trading at $0.055. Created in 2018, this network provided a safe and free way for digital currency users to share their content directly and profitably instead of using expensive and unreliable platforms like YouTube and Amazon.
How does Suzy Tron token (TRX) work?
Tron Network believes that token burning is one of the best ways to create a sustainable and long-term ecosystem. According to the latest network data, more than 11 billion TRX tokens have been burned since October 28, 2021. The Tron development team transfers this amount of tokens to non-recoverable addresses (black hole or Eater Address). Tron token burning process increases the value of this cryptocurrency for users. However, due to the unextractability of this currency, its supply is out of control. But one of the important questions in the field of TRX Burning is, what methods does the Tron team use to burn the TRX token? In the following, we refer to these methods.
1- Using the burning consensus algorithm (PoB)
This method is one of the consensus algorithms that recognizes and approves users who have burned tokens, and rewards them. This algorithm is similar Proof of work consensus algorithm and gives special points to users who burn tokens to have more chances to build blocks.
Of course, it should not be forgotten that PoB is for miners, and since Tron cannot be mined, this method is not used for token burning. The importance of using this method is for miners who, instead of consuming a lot of energy, get rewarded by burning tokens and reducing circulating coins.
2- Burning the transaction fee
In this method, users are charged a fee for each transaction in the network. After this, the Tron received as a fee is removed from the network and burned. By burning or decommissioning TRX, the ground is set for improving the network and increasing the value of the cryptocurrency.
3- Burning unpurchased tokens
When a digital currency network cycles a portion of its token holdings for sale, not all of these tokens may be sold. In this case, the remaining tokens that were not purchased by the users are taken out of circulation by the development team and transferred to an unrecoverable address. By doing this, digital currency networks maintain and keep the value of their assets stable.
What are the goals behind TRX token burning?
In this section, we are going to address the question of what is the purpose of burning the Tron token? It is interesting to know that the first effect of Suzi Tron token is the improvement of Tokonomics parameters. Toconomics or token economy in cryptocurrency examines the parameters related to the value of an asset, such as the amount of supply and market value. One of the ways to improve Tron’s toconomic parameters is token burning, which increases the market value of this cryptocurrency by reducing the supply. In the following, we will examine some other purposes behind the trx token burning.
1- Provision of profit for TRX token holders
The TRON network provides financial resources to pay interest to digital currency holders by using TRX token burning. For this, by burning part of the tokens, their price will increase. With this increase in price, the network will be able to provide profit for TRX holders from the assets added to the network.
2- Preventing cyber attacks
There is a possibility of hacking and spam attacks for each cryptocurrency network. These attacks can eventually cause serious damage to the network and stop the transaction. To solve this problem, the development team reduces the volume of transactions by burning Tron tokens and prevents this damage.
3- Fixing unpredictable errors
During the process of managing and controlling a digital currency, the network may inject more tokens into the market than expected. In this case, the additional tokens supplied by token burning are lost. By doing this, possible damages are prevented in the long run.
4- Ensuring the stability of the network in the long term
The burning of Tron digital currency token assures the users of this network that they have invested their assets in a safe and promising place. Token burning, with improvements Digital currency market value And guaranteeing its price increase in the long term increases the willingness of users to invest in the token in question. This increase in popularity will definitely have a positive effect on the sustainability of the network in the long run.
How will burning TRX token affect its price in the future?
Tronics token price has a direct relationship with Sozi token. The more this process is done, the more the demand exceeds the supply and the price of Tron increases. Although this may not happen immediately, Tron’s market value will definitely improve in the long run. After Justin Sun stepped down, Tron was an almost insignificant project. Over time, token burning programs and strict network policies eventually increased the price and stability of the network.
According to the latest forecast Price predictionThe price of Tron will reach 0.26 dollars by the end of 2026. Also, Walt Investor estimates the price of Tron at the end of 2023 to be worth $1.77. Considering all these things, we can conclude that Tron will have a promising future despite token burning. Although Tron cannot be mined; But it is possible to increase its market value by methods such as burning the Tron token.
5 important points about Suzy Tron token
So far, we have talked about Tron digital currency token burning and its importance. In this section, we are going to discuss 5 important points in the field of Tron token burning.
1- All information about token burning and the amount and how to do it, for each digital currency, is published in the network’s White Paper.
2- Token burning ultimately increases the cost of transactions. One of the reasons that this process prevents spam attacks is the increase in transaction costs.
3- To find out the list of tokens that have been selected for burning, you can refer to some sites such as Coin Market Call.
4- To burn Tron, you can use some wallets that have Buning token capability.
5- In the past year, the Tron network has burned more than eleven billion tokens, making it reach the 14th position among the cryptocurrencies in the market.
What is Suzy Theron’s token writing? Getting to know the process of burning TRX for the first time on the Wallex blog. appeared.
