The TRON community is angry over the JustLend Market because it is going to create a monopoly. Currently, we have energy market providers such as tronpulse.io , tronnrg.com , tokengoodies.com , https://strx.finance/, and more coming built within the TRON Grand Hackathon.
The issue is, since ENERGY is a finite resource, community projects are worried that big institutional whales, TRON SRs, or Justin Sun’s assets are going to be staked within the JustLend Marketplace.
This will significantly reduce all the community energy suppliers’ supply as the amount of TRX staked for energy is going to reduce the effectiveness of the TRX being staked.
For an easy example:
You have 90B Energy resource finite.
One platform has 1 user staking 100 TRX for energy and they have a supply of 90 Billion. This platform is community driven and is slowly growing in usage.
Another platform has a very large amount of TRX and stakes 1000 TRX.
The new platform now has 82B supply and the community platform has only 9 Billion, effectively cannibalizing the market and creating a monopoly. This new platform also has a larger supply and can lower energy costs so users will use it more often, slowly killing all other platforms that can’t compete with the amount of TRX staked.
This monopoly is what will kill all other energy service providers and a healthy competitive market. I think Justlend needs to re-think this before releasing its market, whether that is by creating an AMM of energy marketplaces instead or some other solution, because it is going to kill a lot of TRON community development with the possibility of those expert community TRON devs developing businesses on TRON to leave.
Thanks for your feedback. We understand your concerns regarding our new features on JustLend DAO. We would like to share a few points from JustLend DAO’s perspective.
Staking to obtain resources is a very important feature on the TRON network. As long as users have enough staked TRX, in theory, the transaction fees can be totally covered. Based on this, the energy market is one of the unique and important infrastructures on the TRON network. And a long-term, sustainable, stable energy market is essential for the ecological development of TRON. The developer could choose to pay transaction fees by burning, leasing, or staking according to their own conditions.
From the perspective of TRON’s ecological development, developers are more willing to see a variety of energy leasing services with different characteristics to meet the diverse needs of users. The entry of JustLend DAO is definitely not and will not create a monopoly, it is simply another option available for users to stake their TRX and obtain rewards in return. Different DAPPs have different profit models, user experience, emphases, and different benefits. For investors, they can choose to invest in the DAPP that best suits their own interests according to their own investment strategy. For developers and users, there will be more options and competitions from suppliers. So they can choose the most suitable DAPPs and cheap energy rental prices according to their personal needs.
In the end, JustLend DAO will increase the diversity of TRON’s energy leasing market. As a popular DAPP of TRON and open platform, JustLend DAO has a large number of user groups. With the help of platform influence, JustLend DAO could attract more users to invest on JustLend DAO Energy Rental, and provide developers with more sustainable and stable energy sources. Based on stable energy sources, developers can develop more advanced energy leasing Dapps and integrate energy services from JustLend DAO to reduce the development cost of Dapps.
We believe that with the joining and promotion of JustLend DAO, we will be able to provide a better energy leasing infrastructure for the TRON network and promote the sustainable and healthy growth of the TRON developer ecosystem.
The issue is in how the current energy system works because there is a limited supply of ENERGY on TRON.
If Binance decides to create a TRON energy lending platform and stake their 5 Billion TRX for ENERGY to supply their market, 50% of everyone else’s energy will dry up including the JustLend DAO platform. So instead of having 40,000,000 energy, you’ll be left with 20,000,000 energy.
Those who hold more TRX can essentially control the energy markets and decrease everyone else’s energy supply.
I’m going to give an analogy that might help explain how energy works.
KFC HQ only has 10 chickens and sets up 1 franchise 'A". They supply them with 10 chickens.
Then they open up another franchise “B”. Even though “A” might have more customers they give 8 chickens to “B”.
Now “A” doesn’t have enough supply with only 2 chickens, so all its customers go to franchise “B” to buy chickens. “A” eventually goes out of business because they don’t make a profit on 2 chickens. Then “B” gets all the chickens and customers.
Agree with your concerns. I was also worried if big whales join the game. But after calm down, things are not as bad as I thought.
First, it is up to Binance whether they want to stake their 5 Billion TRX for ENERGY. I would say nothing wrong here, anyone with TRX can stake them for energy as it is work as design. Binance can also join the other Energy rental platform if they want or develop the similar system with their TRX if they see the needs.
Second, The TRON network is a decentralized network with a complete governance mechanism. I believe that if Binance decides to stake their 5 Billion TRX, the community can still adjust the network parameters through governance to make the network tend to balance again. For example, adjust the total energy limit.
The market can not be always the same, the competition is always here. Just like Mike said above, I think it might be a good opportunity for TRON ecosystem. At last, I would say good user experience, reasonable income, and unique product design are the most important factors to retain users and investors. Instead of worrying here, it is better to improve the products and attract better investors and users.
No, the competition is good. Having multiple platforms is good and having big whales or small users do whatever is good.
It is the current energy system that has a finite supply that causes issues and unfair competition among the platforms.
In the previous example if instead “A” had 10 chickens (That couldn’t be taken away) and “B” got a supply of 50 chickens. Platform A would still be able to be profitable and could compete with the bigger platform.
Thank you for your suggestion and concerns. The mechanism of the TRON network is designed like this. For JustLend DAO, we welcome everyone to give suggestions and discuss content related to the Tron network on TRON github or our forum (https://forum.trondao.org/).
It is my opinion that the decision to launch an Energy Market is one that requires careful consideration. As an individual with a vested interest in Tron’s success, I must express my concern about the potential implications of such a move.
Initially, it appears that JustlendDAO has not shown a significant interest in this area until the recent surge in demand. While it is positive that people are beginning to utilize Tron and its energy mechanism, the company’s sudden interest in this area could be viewed as opportunistic.
Furthermore, if an Energy Market is launched, it may create an uneven playing field between larger entities and the long-standing community of Tron. In essence, it could result in a David vs. Goliath situation. The Tron community has worked tirelessly to find ways to make Tron profitable, particularly in the absence of an entire bull market. TRX has not been a strong holding historically, and many OGs have been steadfastly defending the platform since day one, even before mainnet. For this reason, it seems unjust to take away the little energy demand that has been built up over the years.
From a technical standpoint, it is worth important to understand that the Tron Energy resources are capped at 90b Energy. If larger exchanges begin to misuse their user funds for Justlendmarket, it could lead to market manipulation and make the chain expensive for everyone except big whales. Stake 2.0 has already made the chain complicated for the average user, and this move could exacerbate that issue.
At present, the proposed Energy Market appears to be a slap in the face to the community who has worked hard to build up energy markets and make them work. It could lead to a loss of trust in the platform and push away the remaining long-term supporters of Tron. This would be politically unwise and could result in a significant amount of FUD from OGs leaving the chain.
In conclusion, I implore the company to carefully consider the various points that have been made before deciding to launch an Energy Market. It is essential to maintain the trust and support of the Tron community while simultaneously pushing for innovation and growth. Sacrificing the former for the latter may yield short-term gains, but it could result in long-term losses.
What the heck are you talking “David”??? First of all, No, it is not OK for Binance to either join or make their own energy rental platform. Because the TRX they have does not belong to them. It belongs to their users. As it is, Binance participating in the SR process by voting 1.8 billion TRX for themselves is illegal. Make no mistake. This is downright ILLEGAL!!! And it’ll catch up with them when the regulators in whatever country they are incorporated in decide to go after them.
I would say good user experience, reasonable income, and unique product design are the most important factors to retain users and investors. Instead of worrying here, it is better to improve the products and attract better investors and users.
No idea what you are trying to say here. There is nothing unique about stealing an idea that community dapps have been doing for years. There is currently a vibrant energy market with so many long time community dapps and their creators spending a lot of time and effort educating new users about saving trx on transaction costs. Tron releasing a competing dapp is like trondao spitting in community supporters’ faces for all their hard work.
Based on your history, we just don’t believe you when you say “The entry of JustLend DAO is definitely not and will not create a monopoly, it is simply another option available for users to stake their TRX and obtain rewards in return”. This is bu#@$$it! Name another defi dapp that has as much volume as JustLend or another swap/yield farming platform that is as popular as sun.io. Don’t bu#@$$it us with your nonsense. It is insulting our intelligence when you talk to us like we are ret@rded children. This kind of gaslighting is absolutely unacceptable.
You guys have screwed the dapp creators over and over again with your energy fee increases and half baked staking models. You can only push people so far. Go ahead, see if you can pi$$ off all the community supporters and withstand what comes next. Tron is a joke chain in the wider crypto community and is well known to be a centralized fraud on a massive scale. The SEC was not stupid to levy all those charges against Justin. With Binance.us delisting trx from their trx, and the prevailing extreme negative sentiment against TRON, do you think you can afford to not have your long time supporters by your side. Worse, what if we turn on you. Things can get really ugly, real bad if you continue to treat us like this. This is not a threat, but a virtual certainty.
Stick with technical improvements to the chain. Scrap your JustLend energy dapp, and leave dapps to the community. Is it too much to ask not to screw over people that got you where you are?
First of all, From my personal point of view, I agree with you to some extent. Regarding whether Binance has the right to use the assets of the exchange, we have indeed seen a lot of related discussions on the Internet. I believe that the JustLend DAO and the community will continue to pay attention to relevant policies and regulations. You could give feedback and suggestions to the exchange for any concerns.
TRON’s resource model (energy & bandwidth) is one of the most attractive and unique features in TRON protocol. Since the start of the TRON protocol, the energy market has existed. The famous community project Tronlending has started energy leasing services as early as April 2019. I agree with you that the current energy market is full of vitality, with different DAPPs providing a variety of options for users and investors. At the same time, we have also seen that the energy rental ecosystem is constantly evolving with lots of DAPPs opting out and new DAPPs joining in. Users need to consider many factors when choosing a dapp, and they will make the most appropriate choice for their needs.
As you said, JustLend DAO & SUN.io are the most popular DAPPs on TRON with a large TVL. From my point of view, this is a common phenomenon in many mainstream public chains, and it is also the result of market and user choices. Major active DAPPs on several mainstream public chains on defillama, compared to many other community DAPPs, also have a relatively concentrated and large amount of TVL. I personally believe that to gain the long-term trust of users and inflow of funds, and gain wider attention and recognition, popular DAPPs need to consistently and steadily improve and optimize themselves to meet the large demand in the market. The success of JustLend DAO & SUN.io are no different.
Regarding your questions about the TRON network, including parameter adjustments (e.g. the increase of energy unit price) and other issues, I would suggest you join the discussions in the TRON DAO forum. However, with JustLend DAO entering the energy rental market, I personally believe that it will allow users to significantly reduce transaction costs and provide better infrastructure and options for DAPP.
You are not saying anything. You just keep repeating the same thing over and over while conveniently trying to ignore the monopoly aspect of this issue. If this were the real world, there is no way any govt would allow a company that creates a base framework for something where they just create billions of coins out of thin air to also launch and compete with their community businesses by leveraging their massive reserves that they literally got for free.
I personally believe that to gain the long-term trust of users and inflow of funds, and gain wider attention and recognition, popular DAPPs need to consistently and steadily improve and optimize themselves to meet the large demand in the market.
There’s no one in tron that does not know that they can rent energy and save instead of burning trx for transaction costs. This is because of the years of hard-work and advocacy on the part of longtime community supporters in tron that educated and continue to educate users in tron. What TronDao is doing is just capitalizing on all that hard-work which is a big F-U to the people that worked so hard to make the energy market happen. You mentioned TronLending. I can tell you that there were cases when TronLending actually charged more to rent energy than what it costs to burn trx. This is ofcourse when it even worked. Most of the time, it did not work and the users were pissed that they didn’t receive their energy. TronLending was a garbage dapp made by Tron that nobody used. And you thought that was a good example to bring up to show how TronDao can help adoption. This is laughable at so many levels.
Clearly, a lot of effort is being made to divert and deflect from the issue here, which is tron stabbing their supporters in the back for the 17th time and planning to release a dapp with intent to monopolize in a market that was built by the sweat and toil of longtime community members. No matter what bs spin you put on it, at the end of the day, tron will be the bad guy in this movie if they decide to go ahead with it. And, very likely, this time the community will have had enough and may decide to turn on tron. Contrary to what you may think, it is the community that feeds tron, not the other way around. And what tron is trying to do is to bite the hand that feeds it, which is about as disgusting and as dishonorable a thing as it gets.