TRON (TRX) Providing a Model for Top-Down Decentralization
TRON (TRX)–Yesterday TRON celebrated a milestone in the currency’s development, by claiming June 25th as Independence Day. While the coin’s Main Net was launched at the end of last month, Monday marked the official start of TRON’s independent blockchain (migrating away from its ERC-20 roots), with the creation of the TRX genesis block. The event saw a coordinated effort between founder Justin Sun and the various members of the TRON team, conducting a live feed event in addition to highlighting upcoming projects for the currency. In particular, Sun hinted at the next major date for TRX as July 30th, with the release of TRON’s Virutal Machine (TVM) and a to be announced “secret project.”
For those investors and industry enthusiasts who have been paying attention to cryptocurrency for the past year, TRON has had one of the most storied journeys to its current position as 11th in total market capitalization. The coin was first released to the market in September 2017, amidst the crackdown and rumored ban being imposed by the Chinese government on cryptocurrency and ICOs. While the coin struggled to gain price traction through its first three months on the market, December brought one of the largest pumps in all of cryptocurrency history. TRX started the final month of 2017 trading at 0.002 USD and peaked in the first week of January 2018 at 0.30 USD, constituting a price increase of 14900% (to put that figure in perspective, BTC experienced 1900% price growth from the beginning of 2017 to its peak in December). The subsequent fallout in price, which hit 0.025 USD at its lowest point, brought both media and investor backlash in the form of FUD and other frustrations.
However, Justin Sun and the TRON team continued moving forward with their project, meeting the March 31st deadline for the launch of Test Net (the precursor to Main Net), in addition to community-based projects such as the bounty program, TRON loans and the 2 billion USD Project Genesis reward fund.
Sun has been on the receiving end of harsh criticisms, at times unfairly, for his forthright approach to marketing. In December, his frequent twitter updates were viewed by some as attention grabbing ploys to pump the price of TRX. However, Sun and the TRON Foundation have been at the forefront for handling the conundrum of top-down decentralized currencies.
TRON Setting the Standard For Decentralized Projects
The most powerful feature of cryptocurrency is the decentralized protocol of the technology and ethos of the community. Yet investors have clearly given preference to the familiarity of central authority figures. Litecoin struggled in the aftermath of founder Charlie lee selling his stake in LTC, but has overall benefited from his steady presence in the industry. Bitcoin Cash is almost entirely at the mercy of Roger Ver and his divisive tactics. Ethereum, despite having a broad base of GitHub commits, takes its cues from Vitalik Buterin.
TRON has received significant benefit from the guiding hand of Justin Sun and the Tron Foundation, which outweighs any implication of control. Yes, the founder and team behind TRON control nearly 34 billion coins. But thus far, they have used their funds to further the TRON brand with the 1 billion TRX coin burn (which amounted to the destruction of 50 million USD) in addition to the aforementioned community programs. The core TRON team is driving the decentralized growth of TRX, despite their appearance of authority. Through their focus on currency utility (high tps, negligible fee transactions, and limitless growth on Main Net) the TRON foundation has created the impetus for TRX adoption and greater investor interest. They have utilized the features of their coin to pivot in the direction of incentives that reward Main Net development and projects that will drive users to TRON’s burgeoning network.
While TRX prices may not reflect what the coin has accomplished over the last 4 months, the groundwork is being laid for a usable currency with near-infinite possibilities through Main Net. The excitement for TRON’s growth is palpable among the investor base, almost entirely thanks to the effort of Sun and the TRON team.