Tron Foundation’s Token Migration day is here and the community is eager for any news that the foundation or Justin Sun have been communicating over social media. Yesterday the Foundation posted a picture which represents their idea of the “coin burn” process.
Why burn coins?
Coin burn refers to removing tokens from the total supply. Burning coins as vague as it sounds actually increases the value of cryptocurrencies. Tron has a finite total number and when coins from that pool are burnt the demand remains the same; the decrease in supply will prompt the price to rise. This process also encourages the investors to hodl the coins and at the same time, it helps in preparing the coin for a better technology. This purpose of Tron Foundation is believed to mark a new stage for the network on its blockchain.
Tron Foundation, post their token migration will send the TRX token to an address from which they will become unrecoverable. According to Tron Foundation:
“Coin burn encourages a fair distribution of cryptocurrency, helps to control inflation and reward token holders.”
Currently, Sesameseed [Tron SR candidate] is the first community to issue the token and they also burned TRX token first.
Tron Foundation on their Medium page said:
“The amount of TRX at the beginning of mainnet launch will be reduced to 99,000,000,000TRX, and the remaining 33,251,807,524 TRX held by TRON foundation will stay locked until January 1th, 2020.
At the time of writing, the TRX token migration is ongoing and is scheduled to complete by the end of the day and 26th June is the super representative election.
BitcoinGent, a crypto enthusiast, and a Twitter user commented:
“Wait … what? And what does the diamond skull mean? And the rocket ship… and… is this some kind of Dan Brown-style puzzle?
ZZadiki, a Twitter user commented:
“I think they should burn 20% lock up 50% ..10% for 50 years and 30% 10% and 10% 5 years . While having 30% in circulation. The burn is just tactical marketing. To have same supply as ripple .. with 100Bln .. develop products can easily get $1.”