Tron's Fee Cut: Block Producer Revenue Plummets 64%

Tron's Gas Fee Reduction Slashes Revenue

A recent report from CryptoQuant highlights the impact of Tron's fee reduction on its block producers' earnings. The initiative, designed to stimulate network activity, has led to a substantial decrease in revenue.

Daily network fees for Tron's Super Representatives hit a yearly low of $5 million on September 7th. This represents a 64% decline in revenue over just 10 days, compared to the $13.9 million earned before the fee changes were implemented.

Details of the Fee Reduction

On-chain data indicates that average gas fees on Tron have fallen by 60% following the implementation of Proposal #789. This proposal reduced the energy unit price from 210 sun to 100 sun. Gas fees are the transaction costs on the Tron network, measured in its smallest unit, the sun.

Tron Proposal #789, officially titled “Decrease the transaction fees,” was activated on August 29th after a community vote by the Super Representatives.

The proposal, initiated by community member GrothenDI, argued that lower transaction fees are crucial for the “ensure the sustainable and healthy development of the Tron ecosystem.” GrothenDI projected that the reduction could potentially facilitate an additional 12 million transfers from users.

Tron Still Dominates Layer-1 Revenue

Despite the revenue decrease caused by Proposal #789, Tron remains the leading layer-1 blockchain in terms of overall revenue, according to Token Terminal data.

Over the past week, Tron accounted for 92.8% of total revenue among layer-1 networks, surpassing Ethereum, Solana, BNB Chain, and Avalanche. Transaction fees on Tron generated $1.1 billion over the last 90 days.

While Ethereum has generated the most revenue over the past five years with $13 billion, Tron stands second with $6.3 billion.

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