Tron [TRX]: Will new upgrade foster stagnant staking activity? Gauging…
- Tron unveiled the test version of its new staking mechanism, Stake 2.0.
- The overall staking rate of the network was about 48%.
March provided a roller coaster ride for the Tron [TRX] ecosystem. It experienced two precipitous drops, first due to the wider market shakeup due to USD Coin’s [USDC] depegging, and next following the probe by United States Securities and Exchange Commission (SEC) on founder Justin Sun. Consequently, it lost over 6% of its value in the last month, data from CoinMarketCap revealed.
Read Tron’s [TRX] Price Prediction 2023-24
The network, though, saw steady growth in network traffic as the daily active users rose by 6% over the last month. However, a divergence was observed when it came to the development activity on the network, which plunged 36%.
This was a worrying sign, as it showed that the ecosystem was planning to push a major upgrade to its users.
Stakes are high!
Tron unveiled the test version of its new staking mechanism, Stake 2.0, and urged users to try out its features on Nile testnet to help them with feedback before a mainnet launch. However, it should be noted that the decision was still at a proposal stage, voting for which is supposed to happen in April.
As per the proposal, the new mechanism was needed to minimize the complexities of staking and resource management in the existing system. Stake 2.0 is intended to bring about significant decoupling between staking and delegating operations, thus ensuring a hassle-free experience if one wants to re-delegate resources.
Tron stated that after the proposal takes effect, staking can only be done through Stake 2.0 although the funds already staked can be redeemed using the unstake method of Stake 1.0.
Meanwhile, the proposal has been facing a lot of backlash on GitHub, with several community members questioning aspects such as infrastructure preparedness and insufficient testnet time before the mainnet launch.
(1/3)?#TRON Stake 2.0 is incoming!
— TRON DAO (@trondao) March 30, 2023
State of TRX staking
The overall staking rate of the network, or the amount of TRX staked as a percentage of its circulating supply, was about 48%. The staking ratio didn’t show a notable growth over the past month.
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Additionally, the number of stakers on the network grew to 359,011 at press time, representing an increase of 3.63% over the last month.
Meanwhile, TRX exchanged hands at $0.06568 at the time of writing. A noticeable development on the ecosystem was the burning of tokens, as about 19.92 million TRX tokens were moved out of circulation in the last 24 hours. Adjusted against newly minted tokens, there was a net decrease in the circulating supply of TRX by 14.85 million.