The cryptocurrency market is witnessing another strategic tokenomics adjustment as TRON introduces a proposal that could significantly impact its native token’s value. On June 10, 2025, the TRON network officially opened voting for Proposal No. 102, which aims to reduce the creation of new TRX tokens by cutting block rewards and voting incentives .
The Proposal Details
The proposal, which will remain open for voting until June 13, 2025, contains two key components:
• Reducing block generation rewards from 16 TRX to 8 TRX
• Decreasing voting rewards for top Super Representatives and partners from 160 TRX to 128 TRX
If approved, these changes would increase TRX’s yearly deflation rate from 0.85% to 1.29%, effectively reducing the rate at which new tokens enter circulation . This deflationary approach follows a broader trend in the cryptocurrency space where controlled supply reduction is used to potentially enhance token value.
Market Response and Voting Progress
The market has responded positively to the announcement, with TRX experiencing a 2.82% price surge on the day the proposal was introduced . Currently trading around $0.29, the token appears poised to test the key resistance level at $0.30, with analysts suggesting a potential rise toward $0.33 if this breakout occurs.
The proposal has already garnered support from 9 prominent Super Representatives and community contributors, including Poloniex, Abra Capital Management, BlockchainOrg, and cryptoAI. However, the outcome remains uncertain as 18 other key players—including major stakeholders like Binance Staking, Google Cloud, OKX Earn, and HTX.COM—have yet to cast their votes .
Strategic Timing and Market Context
This proposal comes at an interesting time for TRON. Justin Sun, the founder of TRON, had previously announced plans for a supply reduction earlier in April 2025, indicating this move is part of a longer-term strategy rather than a sudden decision . The timing aligns with increased user activity on the TRON network, creating a potentially powerful combination of reduced supply and growing demand.
Technical Analysis and Future Outlook
From a technical perspective, TRX’s Relative Strength Index (RSI) currently sits at 64, indicating strong upward momentum without yet reaching overbought territory. However, as this indicator approaches the overbought region, analysts suggest the possibility of a minor retracement to the $0.27 support level before continuing its upward trajectory.
The proposed supply reduction represents a significant shift in TRON’s tokenomics strategy. By decreasing the inflation rate, TRON aims to create a more favorable environment for existing token holders while potentially supporting long-term price appreciation . This approach mirrors successful deflationary strategies implemented by other major cryptocurrencies.
If the proposal passes on June 13, the implementation of these changes could serve as another catalyst for TRX price movement, particularly if it coincides with continued growth in network usage and broader market stability.
