Blockchain News

Tron [TRX]: Will New Upgrade Foster Stagnant Staking Activity? Gauging…

The Tron [TRX] ecosystem experienced a roller coaster ride in March. It underwent two steep declines, the first as a result of the wider market turbulence caused by USD Coin’s [USDC] depegging, and the second as a result of the United States Securities and Exchange Commission’s (SEC) investigation into founder Justin Sun. As a result, it has lost over 6% of its value in the last month, according to CoinMarketCap data.

The network, on the other hand, showed consistent growth in network traffic, with daily active users increasing by 6% in the last month. Yet, there was a discrepancy when it came to network development activities, which fell 36%. This was a concerning warning because it indicated that the ecosystem intended to push a large upgrade to its consumers.

Tron unveiled the beta version of its new staking system, Stake 2.0, and encouraged users to test it out on the Nile testnet to provide feedback before the mainnet rollout. However, it should be remembered that the decision was still in the proposal stage, with voting scheduled for April.

According to the proposal, the new mechanism was required to reduce the difficulties of staking and resource management under the current system. Stake 2.0 is intended to achieve significant decoupling between staking and delegating activities, resulting in a hassle-free experience when re-delegating resources.

Tron indicated that after the proposal is implemented, staking will be limited to Stake 2.0, while funds already staked can be retrieved using the unstake technique of Stake 1.0.

Nonetheless, the plan has received a lot of criticism on GitHub, with some community members raising concerns about infrastructure readiness and limited testnet time before the mainnet launch.

The network’s overall staking rate, or the amount of TRX staked as a percentage of its circulating supply, was at 48%. The staking ratio has not increased significantly in the last month. Furthermore, the network’s stakeholder count increased to 359,011 at press time, marking a 3.63% rise over the previous month.

TRX was currently trading at $0.06568 at the time of writing. The burning of tokens was a notable occurrence on the ecosystem, as about 19.92 million TRX tokens were removed from circulation in the last 24 hours. When adjusted for newly issued tokens, the circulating quantity of TRX decreased by 14.85 million.


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