On 27th August, Justin Sun, the CEO and Founder of Tron Foundation, made another announcement related to coin burn. This time, the Foundation has burnt more than $670 million ERC20 tokens.
Justin announced on Twitter:
“670,045,551.1449388 #TRX ERC20 token were burnt by #TRON Foundation.”
The coin burn is recorded to be the fourth batch of burn by the Foundation. The team has also announced that Tron has over 909 nodes around the globe. The Foundation said:
“Currently, TRON mainnet runs smoothly, there are 909 nodes around the world, block height: 1818185 (As of 16:16, August 27, SGT), token migration is still in process, meanwhile TRON will keep tronics informed, thank you for the support”
In addition, the coin burn is noted to be the final step of shifting from the Ethereum platform. All the ERC20 tokens accumulated by the exchanges are going to be burnt. When a coin is burnt, it means that they have been sent to an address and once sent to the address they cannot be recovered.
Before the commencement of the coin burn, the Foundation had stated that this would ‘encourage’ fair distribution of cryptocurrency. This would also control inflation and reward token holders.
The token burn has been going on since the launch of Tron MainNet. The MainNet was launched on 25th June 2018 and was completed by the Tron Independent Group [TIG] based on community consensus. In order to commemorate its Independence from the Ethereum platform, the Foundation had burnt over $1 billion which is around $50 million.
The concept of coin burn is similar to the Economics Law of Supply and Demand. The law states that low supply and high demand leads to the increases price and vice versa. Hence, when coins are burnt, the total coin which is in circulation in the market decreases. This, in turn, results with the value of cryptocurrency increasing and investors holding their coin instead of selling it as the value of the token might increase.
Mr Ted’s Crypto said:
“Yes so you burnt ERC20 Tokens, meanwhile total trx supply continues to increase. Not feeling happy about all this.”
Maneikovadzim, a Twitterati said:
“Burn 50% of all Trx”
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