What is TRON (TRX)?

TRON is a blockchain for smart contracts with low fees. Its coin is called TRX. The network is best known as a place to move USDT, the dollar stablecoin, and it is run by 27 elected block producers.

Where it came from

TRON was founded by Justin Sun. The TRON Foundation was set up in Singapore in July 2017 and raised about $70 million that year by selling tokens. TRX began as a token on Ethereum and moved to TRON's own network in June 2018.

How it works

TRON uses a system called delegated proof of stake.

• Holders stake TRX and vote for block producers, called Super Representatives.
• The 27 with the most votes produce the blocks, one every three seconds.
• The list is recalculated every six hours.
• A block is treated as final once 19 of the 27 have built on it, usually within about a minute.

Fees work differently from Ethereum's. Each transaction uses two resources, called bandwidth and energy. Every account gets a small free daily allowance of bandwidth, and staking TRX provides more of both. If you do not have enough, TRX is burned from your balance to pay.

Supply

TRX started with 100 billion coins.

• New TRX is created with every block: 8 TRX for the block's producer and 128 TRX shared among the leading candidates and their voters.
• TRX is destroyed when it is burned as fees.

TRON's documentation says the supply peaked at about 102 billion in mid-2022 and has been falling since, because on most days more is burned than created.

What people use it for

TRON's own documentation describes it as the largest network for stablecoins, mainly USDT. People use it to send dollars cheaply. Lesson 10 covers stablecoins, and Lesson 33 explains why the TRON version of USDT is a different token from the Ethereum version.

Risks to know

• 27 block producers. A small elected group produces every block. That is far fewer than on Bitcoin or Ethereum.
• Use in crime. In 2024 the UN Office on Drugs and Crime described TRON as a preferred choice for crypto money launderers in Asia. TRON, Tether and an analysis firm set up a joint unit that year to freeze illicit USDT.
• Legal history. The US Securities and Exchange Commission sued Justin Sun and related companies in March 2023, alleging unregistered sales of TRX and trading to inflate its price. In March 2026 the two sides filed a settlement: a related company would pay $10 million and the claims against Sun would be dismissed. It was subject to a judge's approval.
• Stablecoin support can end. Circle stopped supporting USDC on TRON in February 2024.
• Wrong-network mistakes. USDT exists on several networks. Choosing TRON when the receiving side expects another network can lose the money. Lesson 33 explains.

Learn more

Lesson 8 explains proof of stake, Lesson 10 covers stablecoins and Lesson 33 covers choosing the right network before you send.