The Tron blockchain-based project may be under the scrutiny of regulators in the United States and China, claims one user in the crypto community, although Justin Sun says these are false rumors.
Justin Sun made a presence on social networks recently to affirm that his project based on blockchain, Tron, there is no risk of facing Chinese or American regulations, as some rumors claim. According to them, Tron is a blockchain project that lost the decentralized spirit that lives in new technologies, and became a project with excessive centralization, so it may be in the eyes of regulators, in a similar way as happened with Ripple. Given this, Sun, who is CEO and founder of Tron, pointed out on his Twitter account that the project continues to be decentralized, and that there is no risk of being subject to regulations by the authorities or agencies of any country.
In his statements, Sun points out that none of the project members have received any notification from any regulatory authority in the world, and insists that it is a decentralized project with more than 18 million active users to date. However, although Sun is persistent in declaring Tron as a decentralized blockchain, for years several experts, including its former CTO, have claimed that this blockchain has completely deviated from its fundamental principles, and that it has become a project with “excessive centralization.”
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The role of Justin Sun and the Tron Foundation in the project
In his tweet, Justin states that neither he, nor the Tron Foundation, nor any of the participating members of the project, have control over the network, so they cannot determine who can use this blockchain or determine how the assets are exchanged. tokens within it. Likewise, Justin affirms that the failure of any person or company member of Tron would not collapse the functioning of the blockchain or affect the price of its tokens.
For Justin, the assumptions that it reveals Adam Cochran, that the SEC is targeting new projects and companies after Ripple, and that Tron may be one of those targets because it is a centralized project, is due to the misconceptions that this person has about the project; and he clarified that the influence that the Tron Foundation exerts on the project is not significant, but rather it is one more of the thousands of contributors that the Tron network has.
Lucien Chen claims that Tron is centralized
On the other hand, the statements of Lucien Chen, former CTO of Tron, say the opposite of Justin's recent claims. First, Chen stated in 2019 that he was resigning from the project due to its excessive centralization, which caused Tron, the blockchain he helped build, to lose its way. For the developer, Tron was not fulfilling its objective of decentralizing the web, nor could applications developed on the Internet work within it.
“The spirit of the blockchain is decentralized, while the TRON project is centralized. Token distribution is centralized, super representatives are centralized, code development is centralized. Even the community is organized under centralization.”
In his statements, Chen accuses Justin of being the only voice in the Tron ecosystem, turning the project into a monetary tool without any spirit of “web decentralization”. Likewise, Tron works based on a system of Delegated Proof of Stake (DPoS), so it keeps a few Super Representatives o Block Producers, who are in charge of supervising the blockchain.
The risks of centralization in the DPoS system
In March 2020, Tron acquired the decentralized blogging network and platform Steemit, something that many members of the Steemit community did not take with joy, so they decided to carry out a fork to once again reduce the voting power and control that both companies, Tron and Steemit Inc, exercised over the platform. However, according to reports, Tron and Streemit reverted the fork, thanks to the “great voting power” they exercise over the project, calling that part of the community that wanted to fork as “hackers”, unleashing a whole controversy among the participants.
To control the situation, Steemit used voting rights and withdrew community governance for several weeks, until it was in order and mutually agreed upon. According to experts, Tron's acquisition of this network and its mode of operation afterwards shows the risks of centralizing the DPoS system.
Several users have also criticized the direction the project has taken, even when Tron announced the launch of new products to venture into the ecosystems. DeFi.
Beware of regulations
As digital ecosystems grow and consolidate, regulators around the world are beginning to show more and more interest in regulating this industry, and while regulations are important to ensure healthy and responsible development, they can also work against investors.
At press time, Cochran deleted some of the tweets he had posted pointing out Tron, and Justin stated that working “together” will help “build an industry that is stronger and more resistant to the short term and speculation”.
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