Tron’s gas fee reduction cuts daily revenue by 64% in 10 days
Analysis
Price Impact
LowThe fee reduction, while significant for network revenue, doesn't directly translate to a major price impact on trx. lower fees could attract more users and transactions, potentially offsetting the revenue decline in the long run.
Trustworthiness
HighThe information comes from reputable sources like cryptoquant and token terminal, and the details align with publicly available information about tron's governance proposals.
Price Direction
NeutralWhile lower fees could attract more users, the immediate effect is reduced revenue for block producers. the long-term impact depends on whether the increased transaction volume compensates for the lower fees. hence, neutral in the short term.
Time Effect
ShortThe immediate effect of the fee reduction is a decrease in revenue. the long-term effects on transaction volume and network usage will take more time to materialize.
Original Article:
Article Content:
Christopher Tepedino 3 minutes ago Tron’s gas fee reduction cuts daily revenue by 64% in 10 days Even after the change, Tron still holds a significant lead in revenue among layer-1 blockchains, including Ethereum, Solana and BNB Chain. 21 News COINTELEGRAPH IN YOUR SOCIAL FEED Tron’s recent fee reduction has significantly cut into the revenue earned by its block producers, according to a new report from CryptoQuant. The total daily network fees for Tron’s block producers, known as Super Representatives, dropped to $5 million on Sept. 7, the lowest level in over a year. That’s a 64% revenue decline in 10 days, down from $13.9 million the day before lower fees were implemented. Onchain data shows that average gas fees on Tron have decreased by 60% after the network implemented a proposal slashing the energy unit price from 210 sun to 100 sun. Gas fees are transaction costs paid on the Tron network, measured in its smallest unit, called sun. Tron Proposal #789, labeled “Decrease the transaction fees,” went live on Aug. 29 after a vote from the Super Representative community. Tron transaction fees since January 2024. Source: CryptoQuant Community member GrothenDI issued the proposal in August, arguing that lower transaction fees would “ensure the sustainable and healthy development of the Tron ecosystem." GrothenDI estimated that cutting the gas fees to 100 sun from 210 sun could result in an additional 12 million potential transfers from users. One TRON ( TRX ) equals 1 million sun, the lowest divisible part of TRX. Related: Tron Inc. adds $110M in TRX to treasury, total holdings now top $220M Tron dominates blockchain revenue among L1s Although Proposal #789 reduced gas fees on Tron, the blockchain still leads other layer-1 chains in revenue, according to data from Token Terminal. Over the past seven days, Tron captured 92.8% of total revenue among layer-1 networks, ahead of Ethereum, Solana, BNB Chain and Avalanche. Fees generated from transactions on Tron amounted to $1.1 billion over the past 90 days. Revenue generated by layer-1 blockchains over past 90 days. Source: Token Terminal Ethereum has led revenue generation over the past five years with $13 billion, compared to Tron’s $6.3 billion. Magazine: Ethereum L2s will be interoperable ‘within months’ — Complete guide # Blockchain # Business # Fees # Tron Add reaction