{"id":37741,"date":"2022-08-30T17:02:00","date_gmt":"2022-08-30T14:02:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=37741"},"modified":"2025-08-29T20:42:43","modified_gmt":"2025-08-29T17:42:43","slug":"what-is-tron-trx","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/what-is-tron-trx\/","title":{"rendered":"What is TRON (TRX)?"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Key points<\/h2>\n<ul class=\"wp-block-list\">\n<li>TRON (TRX) is the native cryptocurrency of the eponymous blockchain platform that hosts decentralised applications. TRON ranks among the top 20 cryptoassets by market capitalisation.<\/li>\n<li>TRON emerged in 2017 in China and was billed as an \u201cEthereum killer\u201d. The project promised simplified development of decentralised applications and support for smart contracts from other blockchains.<\/li>\n<li>Despite years of development, TRON\u2019s ecosystem remains limited, though it includes several large projects, including in decentralised finance (DeFi).<\/li>\n<\/ul>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Who created TRON\u2014and when<\/h2>\n<p>The TRON blockchain was developed under the direction of the young Chinese entrepreneur Justin Sun. He had previously served as <a href=\"https:\/\/forklog.com\/en\/news\/what-are-ripple-and-the-cryptocurrency-xrp\">Ripple<\/a>\u2019s representative in China and launched Peiwo, a popular voice\u2011streaming mobile app.<\/p>\n<p>In July 2017, Sun registered the non-profit TRON Foundation in Singapore. A few months later he founded a company in San Francisco (US).<\/p>\n<p>In August 2017 TRON held an ICO that raised about $70m. The project was positioned as a rival to Ethereum and EOS. A testnet launched in spring 2018, followed by mainnet on May 31, 2018.<\/p>\n<p>Aggressive marketing and Justin Sun\u2019s flamboyant social\u2011media pronouncements, which visibly affected the price of TRON\u2019s native coin, drew frequent criticism from the crypto community. <\/p>\n<p>TRON was accused of high centralisation and copying competitors. Researchers found that the project\u2019s whitepaper released for the ICO <a href=\"https:\/\/www.ccn.com\/vitalik-buterin-continues-to-troll-tron-over-whitepaper-plagiarism-allegations\/\" target=\"_blank\" rel=\"noreferrer noopener\">contains a significant amount of plagiarism<\/a> from materials of other blockchain projects, including Ethereum.<\/p>\n<p>Justin Sun announced his departure from TRON at the end of 2021, saying he was stepping back from active management. In January 2022 governance reform was completed: the project\u2019s control shifted from the TRON Foundation to the decentralised organisation <a href=\"https:\/\/trondao.medium.com\/announcement-on-tron-foundation-restructured-as-tron-dao-3b18aec7699e\" target=\"_blank\" rel=\"noreferrer noopener\">TRON DAO.<\/a><\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How TRON works<\/h2>\n<p>TRON\u2019s blockchain architecture is commonly described as having three layers:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>core<\/strong> \u2014 the consensus, smart\u2011contract, TRON Virtual Machine (TVM) and account\u2011management modules;<\/li>\n<li><strong>application layer<\/strong> \u2014 used by developers to build decentralised applications;<\/li>\n<li><strong>storage layer<\/strong> \u2014 for storing network blocks, segmenting blockchain data and maintaining state data.<\/li>\n<\/ul>\n<p>The TRON blockchain uses a Delegated Proof\u2011of\u2011Stake (DPoS) consensus algorithm, first popularised by its competitor EOS. Blocks are generated every three seconds, and the network\u2019s maximum throughput is 2,000 transactions per second.<\/p>\n<p>Twenty\u2011seven so\u2011called \u201csuper representatives\u201d \u2014 effectively validators chosen from several hundred node operators \u2014 verify transactions and create new blocks. A super representative that produces a block and processes transactions receives 32 TRX. The rewards can be directed wholly or partly to buying votes to retain control of the network. <\/p>\n<p>Users who stake TRX, delegating their coins to super representatives, can earn around 4% (per <a href=\"https:\/\/www.stakingrewards.com\/earn\/tron\/\" target=\"_blank\" rel=\"noreferrer noopener\">Staking Rewards<\/a> at the end of August 2022).<\/p>\n<p>There are three types of nodes in the TRON blockchain:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>super nodes<\/strong>, which are candidates for super representatives;<\/li>\n<li><strong>full nodes<\/strong>, which relay transactions and synchronise with the blockchain;<\/li>\n<li><strong>Solidity nodes<\/strong>, which synchronise<em> <\/em>blocks from full nodes and provide APIs for third\u2011party applications to access the blockchain.<\/li>\n<\/ul>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">What the TRON (TRX) cryptocurrency is for<\/h2>\n<p>TRX is the native currency of the blockchain. For the 2017 ICO, in line with the practice of the time, the team issued an eponymous <a href=\"https:\/\/forklog.com\/en\/news\/what-are-erc-20-tokens\">ERC\u201120 standard<\/a> token on Ethereum. The 100bn TRX supply was allocated as follows:<\/p>\n<ul class=\"wp-block-list\">\n<li>40% for the public token sale;<\/li>\n<li>15% for the private presale;<\/li>\n<li>35% to the project\u2019s reserve fund.<\/li>\n<\/ul>\n<p>Later all ERC\u201120 tokens were converted into TRX coins issued on the TRON blockchain.<\/p>\n<p>TRX is the unit of account on TRON. It pays transaction fees, as well as staking and block\u2011confirmation rewards to super\u2011representative nodes.<\/p>\n<p>By locking TRX, users receive Tron Power (TP) tokens that let them vote for super representatives and for proposals to develop the network in the decentralised governing organisation Tron DAO.<\/p>\n<p>TRX can be used as a means of payment for transfers and purchases, including across many online services and via prepaid plastic cards. You can store the coin not only in the official <a href=\"https:\/\/www.tronlink.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">TronLink<\/a> wallet but also in most popular crypto wallets, including Trust Wallet, Exodus, Coinbase Wallet, Trustee Wallet and the like.<\/p>\n<p>Around mainnet launch, the TRX price jumped above $0.22, then slid to roughly $0.01. It began rising again in 2020 and reached $0.16 by spring 2021. Throughout 2022 the TRX price fluctuated around $0.06\u20130.08 per coin.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"461\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/TRX_ALL_graph_coinmarketcap-1024x461.png\" alt=\"\u0427\u0442\u043e \u0442\u0430\u043a\u043e\u0435 \u043a\u0440\u0438\u043f\u0442\u043e\u0432\u0430\u043b\u044e\u0442\u0430 TRON (TRX)?\" class=\"wp-image-183260\" style=\"width:820px;height:369px\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/TRX_ALL_graph_coinmarketcap-1024x461.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/TRX_ALL_graph_coinmarketcap-300x135.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/TRX_ALL_graph_coinmarketcap-768x346.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/TRX_ALL_graph_coinmarketcap.png 1110w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">TRON (TRX) price chart. Data: <a href=\"https:\/\/coinmarketcap.com\/currencies\/tron\/\" target=\"_blank\" rel=\"noreferrer noopener\">CoinMarketCap<\/a><\/figcaption><\/figure>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">TRON\u2019s development history<\/h2>\n<p>Back in 2017 the TRON team adopted a ten\u2011year roadmap comprising six phases:<\/p>\n<ul class=\"wp-block-list\">\n<li>Exodus (2017\u201318). Token sale, blockchain development and creation of a distributed file\u2011sharing system.<\/li>\n<li>Odyssey (2019\u201320). Mainnet launch and incentives to reward content creators.<\/li>\n<li>Great Voyage (2020\u201321). Enabling ICOs on the Tron blockchain.<\/li>\n<li>Apollo (2021\u201323). Allowing content producers to issue their own TRC\u201120 tokens.<\/li>\n<li>Star Trek (2023\u201325). Creating a decentralised platform for gaming and prediction.<\/li>\n<li>Eternity (2025\u201327). Monetisation based on community growth.<\/li>\n<\/ul>\n<p>In broad strokes, this roadmap remains relevant today.<\/p>\n<p>In the winter of 2019, to integrate with BitTorrent, Justin Sun acquired the decentralised streaming platform DLive, which was then migrated to the TRON blockchain and BTFS.<\/p>\n<p>In August 2021 the TRON Foundation launched the $300m TRON Arcade fund, which over the next three years would invest in blockchain projects in <a href=\"https:\/\/forklog.com\/en\/news\/what-is-gamefi\">GameFi<\/a> and play\u2011to\u2011earn games. <\/p>\n<p>In autumn 2021 the TRON Foundation, together with APENFT, <a href=\"https:\/\/www.coindesk.com\/business\/2021\/11\/03\/tron-foundation-apenft-launch-100m-fund-for-nft-projects\/\" target=\"_blank\" rel=\"noreferrer noopener\">launched<\/a> a $100m fund focused on NFT projects. It offers artists support and guidance, as well as advice on copyright protection and other legal aspects.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How TRON gained popularity thanks to USDT<\/h2>\n<p>One of the network\u2019s biggest successes was the April 2019 issuance of the popular <a href=\"https:\/\/forklog.com\/en\/news\/what-is-tether-usdt\">USDT stablecoin<\/a>, which had previously circulated only on Ethereum and Omni.<\/p>\n<p>Extremely low transfer fees made USDT on TRON a very popular tool for moving value between centralised exchanges and private crypto wallets. The average cost to transfer USDT TRC\u201120 is less than $1, whereas a stablecoin transaction on Ethereum can cost more than $15\u201330.<\/p>\n<p>By April 2022 the market capitalisation of USDT\u2011TRON exceeded $41bn, nearly 50% of the stablecoin\u2019s total issuance across all blockchains. Largely thanks to USDT\u2019s popularity, by September 2022 the total number of TRON accounts topped 109m.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Which projects are in the TRON ecosystem<\/h2>\n<p>Compared with competing blockchain platforms, TRON has a fairly sparse list of DeFi applications deployed on the network. According to Defi Llama, only ten protocols operate there. <\/p>\n<p>The TRON ecosystem is also heavily centralised, as most tools and services were developed under the supervision and control of the TRON Foundation.<\/p>\n<p>Among the largest DeFi services are:<\/p>\n<ul class=\"wp-block-list\">\n<li>the lending protocol JustLend;<\/li>\n<li>the decentralised exchange SunSwap;<\/li>\n<li>the USDJ stablecoin.<\/li>\n<\/ul>\n<p>Together these three account for over 90% of the total value locked on TRON. <\/p>\n<p>Despite the small number of applications, TRON <a href=\"https:\/\/defillama.com\/chains\" target=\"_blank\" rel=\"noreferrer noopener\">consistently ranks<\/a> among the top five networks by total value locked.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How reliable is the USDD algorithmic stablecoin?<\/h2>\n<p>In May 2022 the algorithmic stablecoin USDD, pegged to the US dollar and announced by Justin Sun, was launched. Issuance began simultaneously on the TRON, Ethereum and BNB Chain blockchains.<\/p>\n<p>The USDD peg is maintained by the Tron DAO Reserve (TDR), formed with the participation of Alameda Research, Amber Group, Poloniex, Ankr and Mirana Ventures. The fund consists of highly liquid assets: the USDT and USDC stablecoins, as well as bitcoin and TRX.<\/p>\n<p>After the UST stablecoin lost its peg \u2014 which caused the Terra ecosystem to collapse \u2014 the USDD team sought to increase resilience by introducing over\u2011collateralisation. Despite this, the stablecoin still lost its peg to the US dollar at times.<\/p>\n<p>According to the <a href=\"https:\/\/usdd.io\/#\/\" target=\"_blank\" rel=\"noreferrer noopener\">USDD website<\/a>, at the end of August 2022 the stablecoin was backed by reserves of more than 300%, and its price <a href=\"https:\/\/coinmarketcap.com\/currencies\/usdd\/\" target=\"_blank\" rel=\"noreferrer noopener\">oscillates<\/a> around $1.<\/p>\n<p>When USDD is issued, an equivalent value in TRX coins is burned. By September 2022, <a href=\"https:\/\/tronscan.org\/#\/token20\/TPYmHEhy5n8TCEfYGqW2rPxsghSfzghPDn\" target=\"_blank\" rel=\"noreferrer noopener\">more than 730m USDD<\/a> had been minted and nearly 9bn TRX burned (9% of the coin\u2019s total supply). The asset ranks among the top ten stablecoins by capitalisation.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>TRON is one of Ethereum\u2019s most enduring challengers, launched in 2017. When and why did the network become popular? Which projects run on this blockchain? How robust is USDD, the algorithmic stablecoin championed by TRON\u2019s founder Justin Sun? Here are the key points.<\/p>\n","protected":false},"author":1,"featured_media":37742,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"1","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[2113],"tags":[2117,1652,1302,951],"class_list":["post-37741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptorium","tag-101-altcoins","tag-blockchain-platforms","tag-justin-sun","tag-tron"],"aioseo_notices":[],"amp_enabled":true,"views":"208","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=37741"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37741\/revisions"}],"predecessor-version":[{"id":37743,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37741\/revisions\/37743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/37742"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=37741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=37741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=37741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}