19.01.2021

Justin Sun Reveals New Plan for TRON’s Proof-of-Stake Mechanism

In a series of tweets on Sept. 21, Sun highlighted four key developments in the new plan for TRON’s proof-of-stake mechanism. Specifically, the developments will focus on the means of distributing staking revenues and greater engagement of the community.

Blockchain platform Tron’s founder, Justin Sun, has announced a new plan for TRON’s (TRX) proof-of-stake mechanism.

Community engagement

Sun revealed that the company will consider “a fair, decentralized distribution of staking revenues” to increase user participation and engagement with staking from industry players such as exchanges, wallets and partners.

To encourage the community to be more active and ensure a more robust network economic system, Tron is also planning to raise stake ratio across the network and reduce  unnecessary dividend distribution transactions. Sun continued:

“#TRON Partner Staking & Vote Reward: for each block, the most-voted 127 nodes (TRON partners) will receive TRX rewards in proportion to the votes they get. The total reward for one block is 160 TRX. We have optimized the way staking users can get returns.”

Coming update for the Sun Network

As previously reported, Tron is soon expected to release an update for the Sun Network that was officially launched on Aug. 11. The Sun Network is a sidechain scaling solution that is designed to deliver supposedly unlimited scaling capacity for the Tron network.

Additionally, the solution will purportedly allow decentralized applications to consume less energy and run with higher security and efficiency.

In August, Sun said that getting the TRX cryptocurrency listed on the American version of Binance or Coinbase is his company’s top priority.

Justin Sun Recounts Steem-Hive Hard Fork at Virtual Blockchain Week

Speaking at the Virtual Blockchain Week (VBW), Tron founder Justin Sun presented his side of the recent events involving Tron’s “partnership” with Steemit Inc, and the subsequent hard fork that resulted in Hive (HIVE) forking away from Steem (STEEM).

During February, it was reported that Justin Sun had acquired Steemit Inc alongside the platform’s founder’s reward of 20% of the total STEEM token supply. In response to the purported acquisition, the Steem community moved to initiate a fork to freeze the reward.

Sun rejects the narrative of Tron “acquiring” Steemit Inc

At VWB, Sun stated that he does not think the term “‘acquisition’ is the right word to describe the partnership between the Tron Foundation and Steemit Inc.”

“At the beginning, we didn’t use the word acquisition, we more talk about partnership,” said Justin, seeking to clarify the nature of the relationship:

“Steemit Inc take a certain percentage of the tokens inside of the Steemit ecosystem, and also Steemit.com is one of the most important apps in the ecosystem […] Bitcoin, like Steem, is definitely decentralized, but [some] of the companies, they hold lots of the Bitcoin. So that’s the relationship between the company and the Steem blockchain.”

While emphasizing his preferred nomenclature of “partnership,” Sun acknowledged that, as one of the largest decentralized apps operating on Steem, “Steemit Inc definitely has some influence on the Steem blockchain.”

Binance and Huobi vote against Steem node operators

In March, Sun controversially collaborated with major exchanges Binance and Huobi to oust Steem’s former node operators – prompting reports of a hostile takeover.

The exchanges quickly withdrew their votes – including customer funds that had mobilized for governance voting – claiming that they were unaware they were supporting the removal of Steem’s node operators.

The incident proved to be the final straw in the dispute, with the Hive hard fork transpiring over the following weeks. The Hive hard fork froze the founder’s reward, prompting retaliation from Steem – freezing STEEM tokens associated with the actors who spearheaded the hard fork.

“First of all, when Steemit Inc [got] into the Steem ecosystem, we find out our assets are frozen by some malicious actors,” Sun stated during VBW.

“When Hive do the hard fork, they actually frozen and take all the funds of those people who disagree with them not only us, the community in Korea, and China – they just take their funds in the Hive blockchain,” he asserted. “That’s why we collaborated with the exchanges – to get those funds recovered […], and that’s why we believe we are doing the right thing.”

“We just recovered the funds […] we didn’t do anything other than that. We collaborated with some third parties to refund all the funds for the users, […] and after that, we leave all the decisions to be made by the Steem community.”

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