TRON (TRX) TRX

TRON (TRX) is a public blockchain founded by Justin Sun and best known today as a busy network for stablecoin transfers, especially Tether’s USDT. Its native coin, TRX, is used to vote for the validators that run the network and to pay for the resources that transactions consume. TRON is fast and cheap to use, but it is also criticised for its concentration and its links to illicit flows.

What is TRON?

The TRON Foundation was set up in Singapore in July 2017 by Justin Sun and raised about 70 million dollars through an initial coin offering that year. TRX first circulated as an ERC-20 token on Ethereum; in 2018 TRON launched its own mainnet and moved TRX to it. In December 2021, Sun stepped down as head of the foundation, which was reorganised as TRON DAO.

How TRON works

Delegated proof of stake and Super Representatives

TRON uses a form of delegated proof of stake. Holders stake TRX to obtain TRON Power, which they use to vote for candidates. According to the TRON developer documentation, the 27 candidates with the most votes become Super Representatives and produce blocks, sharing rewards with the people who voted for them. Rankings are updated at regular maintenance intervals.

Bandwidth, energy and burned TRX

Instead of a simple fee per transaction, TRON meters two resources. Bandwidth covers the size of a transaction, and each account gets a small free daily allowance. Energy covers smart contract execution, such as a USDT transfer, and has no free quota. Users obtain these resources by staking TRX; when they do not have enough, the network burns TRX from their balance to cover the cost, as explained on the resource model page.

Supply

TRX has no fixed maximum supply. New TRX is issued as block and voting rewards, with amounts that can be changed by on-chain proposals, while TRX is burned when users pay for resources. The net change in supply therefore depends on network activity.

A short history of TRON

• July 2017: the TRON Foundation is established in Singapore; the ICO raises about 70 million dollars.
• January 2018: Protocol Labs’ founder accuses the TRON whitepaper of copying other projects without citation; the foundation denies it.
• 2018: launch of the TRON mainnet and migration of TRX from Ethereum; TRON acquires BitTorrent.
• December 2021: Justin Sun steps down as CEO and the foundation becomes TRON DAO.
• 22 March 2023: the US SEC sues Sun and TRON entities, alleging unregistered sales of TRX and BTT and wash trading.
• February 2024: Circle stops minting USDC on TRON.
• September 2024: TRON, Tether and TRM Labs launch the T3 Financial Crime Unit to track illicit USDT flows.
• March 2026: Sun settles the SEC case for 10 million dollars, according to Reuters.

What TRON is used for

TRON’s main use is moving stablecoins. USDT on TRON (TRC-20) is widely used by exchanges, traders and people sending dollars across borders, because transfers are fast and inexpensive, especially for users who stake TRX for energy. The network also hosts decentralised applications, lending protocols and tokens such as BTT, and TRX itself is used for staking and governance votes.

What makes TRON different

TRON’s resource model lets frequent users pay for activity by locking TRX instead of spending it, which suits businesses that process many transfers. Its virtual machine is compatible with Ethereum smart contracts, so developers can port applications easily. Its small validator set allows short block times but makes it more centralised than Bitcoin or Ethereum.

Risks and criticism

Concentration is the main concern: only 27 block producers secure the network, and Bloomberg reported in 2025 that Justin Sun controls the majority of TRX in circulation. Sun’s legal disputes and public profile weigh on the project’s image. TRON’s popularity for cheap USDT transfers has also made it a channel for illicit activity: the UN Office on Drugs and Crime described it in 2024 as a preferred choice for crypto money launderers in Asia. Like any crypto asset, TRX is volatile. Scammers often ask victims to pay in USDT on TRON, so read our guide on how to avoid crypto scams.

How to store TRX

TRX can be held on an exchange or in a TRON-compatible wallet, including several hardware wallets. If you plan to send USDT on TRON, keep some TRX in the same wallet, or stake TRX for energy, otherwise the transfer can fail or burn more TRX than expected. Always double-check addresses, which start with a capital T, and keep your recovery phrase offline.