Ethereum News Today: TRON’s 60% Fee Cut: A Bold Bet on Stablecoin Supremacy

The TRON blockchain has implemented a 60% reduction in network transaction fees, the most significant cut since the platform’s inception, to defend its position as the leading infrastructure for Tether’s USDT stablecoin. The decision, approved by the Super Representative community, took effect on August 29, 2025, lowering energy unit prices from 210 sun to 100 sun. This move follows a period of rising TRX token prices and increasing USDT transfer costs, which had begun to erode TRON’s competitive edge over other blockchain networks. With a USDT supply of $80.97 billion hosted on TRON, compared to Ethereum’s $73.8 billion, the network aims to strengthen its dominance by making transactions more affordable and accessible [1].

The reduction is part of a broader strategy to counter rising costs that have driven users away from the platform. Over the past year, USDT transfer fees on TRON had surged from $1.64 to $4.28, while TRC20 transaction costs rose from $0.67 to $0.87. The fee cut is expected to reverse this trend, reducing USDT transfer fees from 2.47 TRX to 0.72 TRX in July 2025, a 70% decline. The network’s founder, Justin Sun, emphasized that while the cut would impact short-term profitability, it is expected to drive long-term revenue growth through increased transaction volume [1].

TRON’s strategy is also supported by its gasless transaction model, which currently accounts for 75% of all activity on the network. This has been particularly effective in regions where cost efficiency is a priority, such as Latin America, the Middle East, North Africa, and the Asia-Pacific. These areas have seen strong adoption of TRON-based remittances and peer-to-peer transactions, driven by the network’s fast settlement times and low fees. The platform processed over $24.6 billion in daily USDT transfers in August 2025, nearly seven times the volume on Ethereum [1].

The fee reduction also alters TRX supply dynamics, shifting the network toward inflation at current transaction levels. According to TRON’s analysis, a 50% fee cut could generate 18.7 million new TRX tokens during a given period, reversing the previous deflationary trend of 76.1 million tokens burned. However, the network anticipates that increased transaction volume will offset inflationary pressures by generating higher total fees [1].

TRON’s dominance in the stablecoin ecosystem is further supported by its governance model, which allows for swift decisions through its 27 Super Representatives. The fee-cut proposal received 17 of the required 27 votes, enabling a rapid implementation process. This streamlined governance structure has positioned TRON as a more efficient and competitive platform compared to more decentralized alternatives like Ethereum. Additionally, major exchanges such as Binance have promoted TRC-20 as the default option for USDT, emphasizing its low fees and high-speed processing [1].

Moving forward, TRON will review its fee structure every three months to ensure a balance between competitiveness and sustainability. The network’s ability to adapt to market conditions and regulatory developments will be crucial in maintaining its leadership in the stablecoin space. As competition intensifies from Ethereum Layer-2 solutions and other high-throughput blockchains like Solana, TRON’s focus on cost efficiency and scalability will determine its long-term success in the evolving blockchain landscape [1].

Source: [1] Tron votes to slash network fees 60% to defend stablecoin dominance (https://cryptonews.com/news/tron-votes-to-slash-network-fees-60-to-defend-stablecoin-dominance/)