What is TRON?
TRON is a blockchain network founded by entrepreneur Justin Sun. Its coin, TRX, was first sold in 2017 as a token on Ethereum, and TRON's own main network went live in 2018. The project was first run by the TRON Foundation, which later became the TRON DAO.
TRON is best known today as a network for moving stablecoins, especially US dollar tokens, at low cost.
How does it work?
TRON uses delegated proof of stake. TRX holders stake their coins and vote for candidates. The 27 candidates with the most votes become Super Representatives, and they take turns producing blocks.
To use the network, accounts need resources called bandwidth and energy. You can get them by staking TRX or pay for them by burning TRX. TRON can also run smart contracts that are compatible with much of Ethereum's software.
What is it used for?
Common uses of TRON include:
- Sending stablecoins such as USDT between wallets and exchanges
- Paying for network resources and transaction fees with TRX
- Staking TRX and voting for Super Representatives
- DeFi apps and tokens built on TRON
When people send stablecoins on TRON, they still need TRX or staked resources to cover the network cost. This is a common surprise for beginners: a wallet can hold dollar tokens but be unable to move them until it also has some TRX. Always check which network you are sending on, because sending tokens on the wrong network can mean losing them. Fees on TRON can also change when the network adjusts its resource prices.
Key facts
- Launched: 2017 as a token; own network in 2018
- Founder: Justin Sun
- Consensus: delegated proof of stake with 27 Super Representatives
- Blockchain: its own network, TRON
- Supply: no fixed maximum
Explainer written by Finvane from official project documentation. It is not investment advice.