Crypto Bitlord, a crypto influencer who had started a petition against Ripple earlier in the year for dumping XRP in the crypto market and suppressing…
Crypto Bitlord, a crypto influencer who had started a petition against Ripple earlier in the year for dumping XRP in the crypto market and suppressing its price, has now sounded the alarm bells on Tron [TRX].
According to Crypto Bitlord, Binance controls 56% of the voting power in the Tron network, and the Tron foundation holds 34 billion TRX which they may dump on the market and suppress TRX’s price.
Crypto Bitlord substantiates his claims with a thread from Brian Fabian Crain, the CEO of Chorus One, a company offering staking services on Proof-of-stake blockchains. It was Crain who first pointed out that Binance controls 56% of the voting power on Tron foundation.
As per Crain, if Binance split their 12,489,690,950 votes across 25 nodes, then they would have 499K votes per node, effectively making them in charge of 25 out 27 validating nodes.
Crain further goes on to critique the Delegated Proof-of-Stake (DPoS) consensus mechanism. In DPoS, the members on the network vote for delegates that will validate new blocks and secure the network on their behalf. The voting power of each member is determined by the number of coins they hold. If a delegate successfully manages to validate a block, then the reward for the block is shared proportionally with the respective electors of the delegate.
Crain implies that the design of DPoS systems centralises power, which is against the very gain of blockchain. He feels that if most of the coins are going to end up with centralised custodians, then we are just rebuilding traditional financial systems with new technology.
However, he also says that this may not be for the worst.
“Or maybe it actually will be much more efficient and there will be a net benefit even if the original ideas of P2P, decentralized networks and users controlling their own assets get left behind.”
On Crypto Bitlord’s thread, debates ensued between members of crypto Twitter. While many members agreed with Crypto Bitlord’s stance on the matter, several members also rebuffed him for his fears.
A few members posited that Binance only has power enough to elect 1 delegate or Super Representative.
Several members of the community also came to defend the Tron foundation and Justin Sun, rejecting the possibility that the Tron foundation or Justin Sun intended to dump TRX on the crypto community. The reasons for the same were that the price of TRX was already suppressed, and so, it would be a bad move for the Tron foundation.
At press time, Tron is trading at $0.0145, up 0.71% in 24 hours. However, Tron has lost over 90% of its value from its all-time high of $0.3003.
Do you think Crypto Bitlord’s concerns are valid or is it just unnecessary FUD? Share your views with us in the comments below.
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