Key Takeaways
- TRON achieves a $5.3B Total Value Locked (TVL) milestone with 12.3% of TRX supply burned, employing token burning to enhance scarcity and value.
- The blockchain focuses on empowering content creators through direct user connections, bypassing intermediaries, driving demand for TRX token.
- The blockchain has exponential ecosystem growth and TVL rise correlate with its ambition to revolutionize the entertainment industry, solidifying its role in the blockchain space.
TRON, an open-source blockchain project’s TVL, has hit $5.3 billion as 12.3% of TRX supply burned. What really happened, and how? Let’s find out.
About The Blockchain
An eminent open-source blockchain project, the blockchain takes pride in being focused on smart contracts and decentralized applications (dApps). The platform holds a unique ambition of transforming the entertainment industry. How? Well, it aims to eliminate the intermediaries that exist in content sharing. Instead, the platform wants to empower content creators to directly connect with the users. The blockchain’s native token, TRX, plays a crucial role in fueling this ecosystem.
Deflationary Mechanism and Token Burning
Token burning is the process of removing coins from circulation, thereby permanently decreasing the overall supply of the cryptocurrency. Through this notion, the blockchain aims to increase scarcity and raise the value of each remaining coin. This process is crucial for coins that can be mined quickly.
According to Mike McCarthy’s tweet, TRON’s supply has been deflationary since 2021, with 12.3% of the supply already being burned. In the next five years, it is projected that 80.8 billion will be reduced in the 1st year, 74.7 billion in the second year, and so on. All in all, it is expected that there will be a 50% supply reduction in the next five years.
TRON’s Ecosystem Growth
The ecosystem growth has been exponential, and it has played a crucial role in supporting dApps and various projects. The blockchain’s role in connecting content creators directly with end users while bypassing intermediaries has been impressive. Moreover, for this reason alone, there is an increase in demand for the TRX token.
TVL Milestone and User Growth
Recently, TRON’s Total Value Locked (TVL) has reached $5.3 billion. This marks a significant improvement from its lowest level earlier this year. The TVL last peaked in November 2021 at over $6 billion. There is indeed a correlation between TVL growth and an increasing number of users in the network.
TRON’s dual achievements of hitting a $5.3 billion TVL milestone and implementing a deflationary mechanism through token burning are impressive. Moreover, TRON’s progress in reshaping the entertainment industry is outstanding. The blockchain has positioned itself as a noteworthy player in the blockchain space.
Source
