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The Tron blockchain has recorded a continuous increase in the supply of its native token, TRX, for 108 consecutive days. According to analysis conducted by Tron DAO Research and verified through TRONSCAN data, this phenomenon persisted from July 1 to October 16. The cause lies in the fact that net emissions generated by the network exceeded the amount of tokens burned or staked for fee payments during that period.
Why it matters
This data is relevant because it dispels the common notion that increased network usage would automatically lead to token deflation. In reality, Tron’s economic structure dictates that transaction costs depend on resources such as Bandwidth and Energy, which regenerate within a rolling 24-hour window and do not permanently consume staked TRX. Consequently, the expansion of settlement volumes has not reduced the available market supply.
The context is marked by a strong increase in economic activity on the network. Tron DAO Research reported that total stablecoin settlement volume in the third quarter reached 2.2126 trillion US dollars. This value represents a 5.1% growth compared to the second quarter. The combined balance of major stablecoins present on Tron, USDT and USDD, stood at 93.88 billion dollars in the third quarter, with a quarterly increase of 5.5%.
The numbers
In the period between July 1 and October 16, the net supply of TRX increased by 148.6 million units. Specifically, in the third quarter, net growth was 125.8 million TRX, while another 22.9 million were added in the first 16 days of October. The expansion of net supply in the third quarter corresponds to a 0.133% increase compared to the initial supply of approximately 94.850 billion TRX.
Analyzing daily flows from July 1 to October 16, average issuance stood at 3.916 million TRX per day, while average burn was 2.486 million. The average daily gap between emissions and burn resulted in 1.430 million TRX. In this time interval, burns covered only 63.5% of new emissions. To achieve supply equilibrium in that specific period, data indicates that burns would have needed to increase by 57.5% or emissions would have had to decrease by 36.5%, all else being equal.
What remains to be understood
Sources agree on the aggregate data and the dynamics of net emission. No significant divergences emerge between Tron DAO Research reports and subsequent analyses. The structure of block production rewards, set at 8 TRX per block plus 128 TRX for voters, remains the main driver of the supply expansion observed during this period.
Sources: CryptoSlate, Block Media.
This article is for informational purposes only and does not constitute financial advice or an investment recommendation.
* Content created with the assistance of artificial intelligence systems.