3.25 Billion TRX (TRON) Have Been Locked Up
The massive supply of Tron (TRX) tokens has always been a questionable matter in the crypto markets. Before the Tron Foundation burned 1 Billion of its own TRX during the project’s Independence Day, the initial total supply was 100 Billion. After the burning, this total supply number is now 99 Billion. Considering the circulating supply of 65.75 Billion TRX, there was an extra 33.25 Billion that was still in the foundation’s possession.
Tron has announced that these remaining 33.25 Billion TRX has now been locked up in 1,000 addresses within the Tron MainNet. This distribution of funds over will reduce the risk of losing all the coins if one address were to be hacked. The team also offered additional information regarding the identity of these addresses along with plans of developing a query tool where TRONICS members can regularly verify and search said addresses.
The Reason behind the Lockup
Tron’s lockup move addressed the problem of supply predictability. Crypto traders and TRX holders now for sure that there are 65.75 Billion TRX in circulation. The 33.25 Billion will be locked away until January 1st, 2020. As a result, this supply predictability will give investors more confidence in the token.
With investor confidence expected to go up and a working MainNet, the value of TRX is bound to increase with time as anticipated by Tron supporters. A notable example of such market response was when Ripple locked away its 55 Billion XRP in escrow last year in December. Not more than a month later, XRP’s price had surged from $0.22 to $3.82; a 1,600% increase in value.
It seems that Tron has made the right move concerning its circulating supply of TRX until January 1st, 2020. This will provide a more stabilized market for crypto traders in which they can invest in TRX without worrying about the circulating supply suddenly increasing and thus leading to a price crash due to an oversupply.