Raising the interest rate for freezing TRX means more users and developers will be incentivized to freeze TRX to gain bandwidth and energy — which is needed to send transactions and interact with smart contracts on the TRON Network.
For investors who are looking for yield, 7.2% is a good interest rate, which means people seeking yield may be incentivized to buy and freeze TRX.
With less TRON circulating because it is being frozen for yield, bandwidth, or energy, this could have positive effects on the price.
7.2% inflation per year is still very low, and will have minimal negative drag on the price. There’s also a burn mechanism built into TRX transactions fees, which lowers the inflation rate.
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