Ethereum News Today: Tron's Fee Cut Aims to Win Stablecoin Wars With Speed and Scale

Tron is set to slash its network fees by 60% starting August 29, marking a pivotal move aimed at boosting the usage of its native token, TRX. The proposal, titled “Decrease the transaction fees” (Issue 789), seeks to reduce the energy unit price from 210 sun to 100 sun. This change would effectively cut the cost of transactions consuming energy by half, potentially expanding the network’s accessibility to nearly 45% more users—particularly for high-volume activities like stablecoin transfers [1].

The proposal, submitted on August 8 by GitHub user GrothenDI, has gained significant traction. As of August 27, it secured 17 of the 27 necessary votes from Super Representatives, with only one more approval needed to pass before the voting deadline on August 29 [5]. Key supporters include Chain Cloud, CryptoChain, Nansen, HTX.com, P2P.org, and Tron Alliance. With the required approvals within reach, the proposal appears poised for implementation.

The potential benefits of the fee reduction are substantial. By lowering the cost per transaction, the Tron network could attract more users and increase transaction volume, particularly for stablecoin transfers. This aligns with Tron’s historical success in reducing energy costs in 2024, which led to a marked increase in new smart contract deployments. However, the move also carries risks. At the current rate of 210 sun per energy unit, Tron achieves a net burn of around 76 million TRX annually. The proposed 100 sun rate could reverse this trend, resulting in net inflation unless transaction activity rises significantly to offset the lower burn rate [1].

Tron’s dominance in stablecoin transactions is underscored by its handling of over $80 billion in USDT by mid-2025—more than half of the global supply. This growth has positioned Tron as a preferred network for fast, low-cost stablecoin transfers, especially in regions like Latin America, the Middle East, and Asia-Pacific. The Tron network processes more than 273 million transactions annually, far surpassing Ethereum’s volume in stablecoin-related activities [2].

The network’s appeal lies in its combination of low fees and high throughput. Tron’s average transaction speed is 3–5 seconds per block, compared to Ethereum’s 12–13 seconds. Additionally, the cost of sending USDT on Tron is typically between $0.10 and $0.50, while Ethereum users often pay between $0.40 and $3, with spikes reaching $10 or more during congestion [2]. These cost and speed advantages have driven significant adoption, particularly in cross-border payments and remittances.

Despite its strengths, Tron faces challenges related to centralization. The network relies on just 27 validators, raising concerns about security and decentralization compared to Ethereum’s thousands of validators. Moreover, regulatory frameworks like the U.S. GENIUS Act, the EU’s MiCA, and Hong Kong’s Stablecoin Bill could impact Tron’s operations. These regulations emphasize reserve backing, transparency, and compliance, which could influence how stablecoin networks function and compete [2].

The proposed fee reduction is expected to further cement Tron’s role as the leading stablecoin network. If approved, the move could enhance Tron’s appeal in regions prioritizing low-cost transactions, while also encouraging broader adoption of TRX. The success of this initiative will depend on whether increased transaction volumes can offset potential inflation and whether the network can maintain its security and compliance standards amid evolving regulatory landscapes [1].

Source: [1] Tron's fee-cut proposal nears approval as vote gains ... (https://cointelegraph.com/news/tron-proposal-789-transaction-fees-vote) [2] Tron Didn't Replace Ethereum—But It Took $80B in USDT ... (https://www.ccn.com/education/crypto/tron-vs-ethereum-usdt-dominance-explained/) [3] Tron (TRX) Price Set to Skyrocket Following 50% Fee Drop (https://investx.fr/en/crypto-news/tron-trx-price-set-skyrocket-following-50-fee-drop-what-expect-next/) [4] TRC-20 vs ERC-20: Fees & 11 Key Differences (2025) (https://breet.io/blog/usdt-trc-20-vs-erc-20-fees-and-differences) [5] Tron Fee-Cut Plan Nears Approval With 17 Votes Secured (https://www.bitdegree.org/crypto/news/lower-fees-on-the-horizon-tron-proposal-hits-17-of-18-votes)