Ethereum News Today: Tron’s Fee Cut Could Shift Power in Stablecoin Wars

A key proposal to reduce transaction fees on the Tron (TRX) blockchain is approaching approval as voting momentum builds ahead of the deadline. The proposal, titled “Decrease the transaction fees” (Issue 789), was submitted by GitHub user GrothenDI on Aug. 8 and aims to reduce the energy unit price from 210 sun to 100 sun. This change would effectively halve the cost of transactions that consume energy, as one TRX token equals 1,000,000 sun. If approved, the adjustment is expected to make Tron more accessible to users, potentially expanding the network’s affordability to nearly 45% more users, especially for high-volume use cases like stablecoin transfers.

Historical data supports the potential impact of such a fee reduction. After a similar proposal (Proposal 95) cut energy costs by 50% in 2024, the network experienced a surge in new smart contract deployments. This trend underscores the strong correlation between lower fees and ecosystem growth. However, the proposed change comes with risks. At the current rate of 210 sun per energy unit, Tron achieves a net burn of around 76 million TRX. Lowering the rate to 100 sun could shift this dynamic, leading to net inflation unless transaction activity increases enough to offset the lower burn rate.

Voting on Proposal 104 opened on Tuesday and will close on Friday. As of Wednesday, the proposal had received 17 votes in favor, including support from notable entities like Chain Cloud, CryptoChain, Nansen, HTX.com, P2P.org, and Tron Alliance. With 10 votes still pending, the proposal appears likely to pass under Tron’s governance rules, which require at least 18 of the 27 Super Representatives to approve it. These Super Representatives are elected block producers responsible for generating and validating transactions on the network.

Tron, launched in 2017, has maintained a strong position across multiple market cycles and is currently the ninth-largest blockchain by market capitalization, valued at $33.1 billion according to CoinMarketCap. The network has also seen significant growth in its stablecoin market, with its stablecoin supply increasing by 40% since the beginning of the year. The Tron network’s recent spike in USDt usage further highlights its growing role in the stablecoin ecosystem.

The Tron blockchain is now surpassing Ethereum in USDT supply, with $80.8 billion in USDT on Tron compared to Ethereum’s $73.8 billion. Additionally, Tron processes around $21.5 billion in daily USDT transfers—nearly seven times greater than Ethereum’s stablecoin transfer volumes. More than 1 million unique wallets transact USDT daily on Tron, accounting for 28% of all active stablecoin wallets globally. This shift in stablecoin activity highlights Tron’s growing dominance in the sector, particularly for low-cost and high-speed transactions.

Source: [1] Tron's fee-cut proposal nears approval as vote gains ... (https://cointelegraph.com/news/tron-proposal-789-transaction-fees-vote) [2] Tron Now a Whale Sensation With 13,730,000 TRX Stacked (https://finance.yahoo.com/news/tron-now-whale-sensation-13-161156113.html) [3] TRON Price, TRX Price, Live Charts, and Marketcap (https://www.coinbase.com/price/tron) [4] TRON Price Chart Today - Live TRX/USD (https://goldprice.org/cryptocurrency-price/tron-price) [5] Ethereum Nowhere Close to TRON's Stablecoin ... (https://www.ccn.com/news/crypto/ethereum-tron-stablecoin-dominance-fred-krueger/)