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Altcoin

24 Jun 2025

What is Tron (TRX)?

The world of cryptocurrency and blockchain is constantly offering new discoveries with the rapid advancement of technology. One of the key players in this vibrant ecosystem is TRON (TRX). Maybe you've heard of it, maybe you're wondering “What is TRX?”, “What is Tron coin?”, “What does TRX coin do?”. Don't worry, this guide is here to answer these questions and help you get to know the TRON ecosystem better.Definition and Origin of TRONTRON is a decentralized blockchain platform founded in 2017 by Chinese entrepreneur Justin Sun. The project's first and main goal is to empower decentralized commerce and communities around the world. TRON's first and most well-known vision is to revolutionize the digital content and entertainment industry. The idea is to eliminate the intermediaries (such as YouTube, Spotify, app stores, etc.) that come between content creators (artists, writers, game developers, etc.) and consumers. In this way, creators can share their content directly with their audience, have full ownership rights, and be fairly compensated for their labor, without paying commissions to intermediaries. To realize this vision, TRON aims to be a global, free digital content entertainment platform.The platform's native cryptocurrency is called TRX. The most clear and basic answer to the question of what is TRX is this token, which forms the backbone of the TRON network. In terms of what TRX coin does, it is central to many transactions and activities within the network: paying for services and goods on the network, covering smart contract execution fees (especially when there is not enough Bandwidth or Energy), acquiring network resources such as Bandwidth or Energy by staking TRX, voting for Super Representative candidates or SRs for network governance, and being used as a means of transferring or storing value.TRON began its journey in 2017 on the Ethereum blockchain, using the ERC-20 token standard. However, in line with the project's scaling goals and its own technical requirements, it made an important strategic decision to transition to its own private mainnet in 2018. The Tron mainnet date of May 31, 2018 ended TRON's dependence on Ethereum, making it a fully independent Layer-1 blockchain platform with its own technology, consensus mechanism and ecosystem. As can be seen in the metric comparisons below, TRON has surpassed Ethereum in many respects. Source: Chainspect TRON's broader vision is to become one of the core infrastructures of Web 3.0, the decentralized internet. This means a censorship-resistant and transparent internet where users control their data and digital identities. TRON's reorganization as a DAO (December 2021) was a critical step towards this goal of decentralization. TRON's History: Key MilestonesTRON's eventful history has kept the project in the spotlight. TRON has become a well-known coin and ecosystem in the cryptocurrency space, with its founder Justin Sun constantly making headlines, as well as constant innovations. TRON's story began in 2017 and has evolved almost every year to adapt to the crypto space (with developments such as EVM formation, stablecoin issuance). Let's take a look at TRON's history together:2017: ICO process and ERC-20 token launch. It all started when Justin Sun founded the TRON Foundation in 2017. In the same year, an Initial Coin Offering (ICO) was organized for the project's first funding. This ICO managed to raise around 70 million USD. The answer to the question of when TRX was released is given by this ICO process. At this stage, TRX tokens were issued on the Ethereum network in the ERC-20 standard. An interesting detail is that this ICO was completed just before China declared token sales illegal.In 2018, the TRON mainnet went live: The most critical step on TRON's path to becoming an independent blockchain was the successful launch of its mainnet on May 31, 2018. This date is an important date in the project's calendar as the date of the TRON mainnet. This transition allowed TRON to maintain full control over its technological architecture and consensus mechanism.The acquisition of BitTorrent strengthened the Web3 media vision: A major move that cemented TRON's ambitions in the digital content and decentralized media space was the acquisition of popular P2P file-sharing giant BitTorrent in 2018. The acquisition was made by Justin Sun for around $140 million. The BitTorrent-tron relationship was based on TRON's strategy to leverage BitTorrent's large user base and peer-to-peer technology infrastructure to accelerate decentralized content distribution and strengthen its vision for Web3 media. BitTorrent was later renamed Rainberry. The BitTorrent token (BTT) also became part of this ecosystem.TRON Virtual Machine (TVM) provided support for dApp developers: One of TRON's key tools for developers is the TRON Virtual Machine (TVM), launched in 2019. TVM is designed to run smart contracts and decentralized applications (dApps) on the TRON network. It is also a Turing-complete (computationally universal) execution environment. A prominent feature of TVM is its compatibility with the Ethereum Virtual Machine (EVM). This compatibility allows developers in the Ethereum ecosystem to easily port existing smart contracts and dApps written in familiar programming languages such as Solidity to the TRON network. TVM uses Bandwidth and Energy for transactions instead of Ethereum's gas fee. This model significantly reduces smart contract interactions and transaction costs, and can even make them free. The low barrier to entry and costs incentivize developers to build innovative and complex applications on the Tron dapp platform.Launch of the USDD stablecoin and expansion in the DeFi space: One of the central steps in TRON's strategy in the decentralized finance (DeFi) space was the launch of USDD (Decentralized USD) in May 2022. USDD is a decentralized stablecoin launched by TRON DAO Reserve in partnership with several top blockchain institutions and is notable for being over-collateralized. It aims to remain pegged 1:1 to the US dollar. It is backed by a basket of multiple cryptocurrencies such as USDD, BTC, TRX, USDT. While the minimum margin is set at 120%, in practice it is often much higher (for example, one report put it at 204.5%). The stability of the USDD is maintained through monetary policies (interest rates, open market operations) set by the TRON DAO Reserve and mechanisms such as the Peg Stability Module (PSM). The PSM allows users to make fast swaps between USDD and other accepted stablecoins such as USDT, USDC, etc. at a 1:1 ratio without slippage. USDD was initially launched simultaneously on three blockchains - TRON, Ethereum and BNB Chain. It later expanded to support seven additional chains, including Avalanche, Fantom, Polygon, Arbitrum, Aptos, Aurora and Optimism. The success and adoption of USDD has made TRON a major hub for DeFi projects (DEX and lending platforms such as JustSwap, JustLend) and stablecoin transactions. As of January 2025, Bittorrent also supports USDD. All these milestones have helped TRON evolve from being just a content-sharing platform. Thus, the TRON ecosystem has expanded, strengthening its technological infrastructure and becoming a versatile blockchain that has expanded into new areas such as DeFi. So, what exactly makes TRON valuable?Why is TRON valuable?The value of the TRON platform in the blockchain world stems from its technical advantages, use cases and strong ecosystem components. Detailed answers to the question of what TRX coin is for explain why TRON can be attractive to users, developers and investors. In addition to the core functions on the network, the TRX token offers opportunities to earn passive income, participate in network governance, and access resources. Here are the key factors that make TRON valuable:Fast and low-fee transfer infrastructureOne of TRON's most well-known and appreciated features is its high transaction speed and exceptionally low transaction fees. While transaction costs on many blockchains increase with network density, TRON's Bandwidth and Energy system means that standard transactions are often free. Each user is entitled to a certain amount of free resources per day (e.g. 600 Bandwidth or 5000 Energy). When these limits are exceeded or more resources are needed, the necessary resources can be obtained by staking TRX or paying a very small amount of TRX. With this model, TRX transfer fees are negligible compared to many other popular blockchains (as low as $0.000005 in some cases). This feature makes TRON extremely attractive, especially for stablecoin transfers and frequent dApp interactionsHigh TPS for dApp and NFT applications (over 2,000 transactions per second)Scalability is one of the biggest challenges facing blockchains today. TRON is capable of processing more than 2,000 transactions per second (TPS) thanks to its Delegated Proof of Stake (DPoS) consensus mechanism and optimized architecture. This high transaction throughput makes TRON a suitable platform for decentralized applications that require high volumes of interaction, such as gaming, social media, financial services (DeFi) and non-fungible tokens (NFT). TVM's efficiency supports the scalable growth of dApps by enabling fast and reliable execution of smart contracts. TRON also supports NFT standards such as TRC-721 and TRC-1155. Chart comparing the 90-day TPS of TRON and Ethereum networks. Source: Chainspect USDT transfers over the TRON network are widely usedTRON's speed and low-cost advantages have made it a global hub for stablecoin transfers. USDT (Tether), the largest stablecoin on the market, is also issued and widely used on the TRON network (USDT-TRON) using the TRC-20 standard. Transfers through the USDT Tron network have become a popular choice among both individual users and exchanges due to the cost-effectiveness and speed it offers. TRON hosts around 35% of the total market capitalization of stablecoins, second only to Ethereum.Stake and governance features (Super Representative system)TRON has built its network security, consensus and governance on the Delegated Proof of Stake (DPoS) mechanism. In this system, 27 Super Representatives (SRs) are in charge of generating blocks and confirming transactions. Any account that wants to become an SR candidate can apply by burning 9,999 TRX. Users earn voting rights called TRON Power (TP) by staking (freezing) TRX tokens. Every 1 TRX staked is equal to 1 TP. With this TP, users can vote for SR candidates or existing SRs. The 27 candidates with the most votes are elected as SRs every 6 hours. SRs earn rewards for each block they produce (one block is produced every 3 seconds) and from the voting pool. For example, the block-producing SR receives 16 TRX per block, while SRs and SR Partners (candidates ranked 28-127) receive a shared voting reward of 160 TRX per block based on their total votes. When asked what TRX staking is, it means contributing to the security and functioning of the network by freezing TRX through this system, gaining voting rights and a share of the rewards. The TRX super representative system refers to the main actors of this DPoS model, namely the network validators and candidates. SRs also form the TRON committee and are authorized to vote on proposals to change the dynamic parameters of the network (e.g. fees, reward rates, TVM updates). A proposal requires at least 19 votes out of 27 SRs to pass. This governance model allows TRON to be managed in a decentralized and community-driven structure. Staking TRX is also a way to get the Energy needed to interact with dApps or execute smart contracts.Large user base and high transaction volumeTRON is a platform with high global adoption. The number of accounts on the network has exceeded 180 million. Features such as low fees, high speed, and stablecoin support have encouraged this large user base to stay active on the network, and new users are constantly joining. This high network activity has a direct impact on the TRX token price and total market capitalization. TRX is often ranked in the top 20 of the largest cryptocurrencies by market capitalization. The supply and circulation of TRX is also an important factor in determining market capitalization and liquidity. TRX price since launch During the ICO, 65.7% of the total supply (private and public sales) was distributed, while 34.3% was allocated to the Foundation and the team. SR rewards cause an annual inflation of approximately 504,576,000 TRX. Who is the Founder of TRON?The most well-known and influential name behind the TRON project is Chinese entrepreneur Justin Sun. Therefore, for those who ask who the founder of TRX coin is, the answer is clear: Justin Sun. Sun's full name is Sun Yuchen. He is known in the cryptocurrency industry for both the success of his project and his unique marketing style and occasional controversies. Let's take a closer look at Justin Sun's profile and career:Before entering the crypto world, he had experience in technology and finance. In 2013, he was the Chief Representative for China at leading crypto company Ripple Labs. His entrepreneurial talent was recognized early on and he was twice included in Forbes' “30 Under 30” list in Asia in 2017 and 2018. His academic background includes a master's degree in political economy from the University of Pennsylvania in the United States. It is also known that Jack Ma graduated from Hupan University.After establishing the TRON Foundation in 2017, he has taken aggressive steps to strengthen the TRON ecosystem and its strategic position. One of these steps is the acquisition of BitTorrent for $140 million in 2018. He also invested in the Poloniex cryptocurrency exchange with other partners in 2019 as part of an effort to expand its ecosystem.Justin Sun is seen as a highly skilled PR master when it comes to publicizing his projects and attracting attention. He has kept TRON and his name in the spotlight with unconventional and sometimes perceived as provocative marketing strategies. For example, in 2019, he paid a record sum for a dinner with Warren Buffett ($4.5 million) and then canceled the dinner, or buying a work of art and eating the banana that was part of it. His appointment by Grenada as Permanent Representative to the World Trade Organization in December 2021 also had a positive impact on his international profile. Tron founder Justin Sun eats a banana that forms part of his artwork Comedian during a press conference in Hong Kong. Source: Bloomberg However, Justin Sun's career has also been marred by some serious controversy and legal issues. Allegations that the project's whitepaper, the project's technical document, was plagiarized and included large sections from other projects' documents, notably IPFS and Filecoin, undermined the project's initial credibility. The massive sell-off after the ICO, which led to a sharp drop in the value of TRX tokens, raised suspicions of market manipulation. Friction between the TRON team and independent developers over the network's transparency and degree of decentralization has also called into question the project's claim of decentralization.The most significant legal challenge was the lawsuit filed by the US Securities and Exchange Commission (SEC) against Justin Sun and the companies under his control in 2023. The SEC accuses Sun and his companies of selling TRX and BitTorrent (BTT) tokens as unregistered securities and engaging in “wash trading” (artificial trading volume creation) to manipulate the price of TRX. This case is putting a lot of pressure on Justin Sun's and TRON's reputation.Despite these controversies and challenges, Justin Sun's influence in the crypto industry and TRON's prominent position in the market continues. TRON remains one of the largest blockchains by market capitalization, and Sun is actively involved in developments in Web3 and DeFi. TRON is characterized by its technical features (high speed, low fees, high TPS, DPoS) and continues to be attractive to developers as a Tron dapp platform. Justin Sun's plans for the future include expanding the ecosystem, introducing innovations such as zero fees for stablecoin transactions, and moving TRON to other chains compatible with Ethereum Virtual Machine (EVM).Frequently Asked Questions (FAQ)Below are answers to frequently asked questions about TRON, the cryptocurrency behind the well-established altcoin TRX:What is TRX and what is it used for? TRX is the name of the native cryptocurrency of the TRON network. The TRX token is used to pay for transactions on the network, as well as to transfer value in dApps, participate in governance votes with staking, and for network resources (bandwidth, etc.). In other words, TRX acts as “fuel” in the TRON ecosystem.How does the TRON network work? What is TRON network? TRON is a Delegated Proof of Stake (DPoS) blockchain. A total of 27 “Super Delegate” nodes create blocks and confirm transactions. Each block is generated in about 3 seconds. Users earn “Tron Power” by locking their TRX, which gives them the right to choose which agents generate blocks. This mechanism ensures that the network is fast and low-cost.Which exchanges have TRX? TRX is listed on most of the world's leading cryptocurrency exchanges. For example, TRX is traded on major platforms such as Binance, OKX, Huobi, KuCoin, Kraken and Bittrex. TRX trading pairs can also be found on local exchanges such as Paribu, BTCTurk in Turkey.Who is Justin Sun? Justin Sun is the founder of the TRON (TRX) cryptocurrency. A Chinese-born entrepreneur, Sun previously worked at Ripple Labs and graduated from the Hupan Entrepreneurship Center founded by Jack Ma. Sun has expanded the TRON ecosystem by acquiring companies like BitTorrent and Poloniex.Can TRX be staked? Yes, TRX can be staked. TRX holders get Tron Power by “freezing” their tokens. This gives them voting rights and a say in network governance. The more TRX frozen, the more voting power the user has and the more opportunities to participate in block rewards.Is the TRON network trustworthy? TRON is a large blockchain that has been running for over five years and has a large user base. It offers efficient block generation and transaction confirmation thanks to its DPoS mechanism. However, as with any blockchain, there are security risks; in the past, the TRON DAO has been subject to regulation and lawsuits. Overall, TRON is considered a well-established project in the cryptocurrency ecosystem, but it is important to assess all risks before investing. For the latest guides on TRON and content-driven Web3 projects, be sure to check out our JR Kripto content series!

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