Recent reductions in transaction fees on the Tron platform have led to a significant decrease in revenue for its block producers. Key network metrics are now the subject of active discussions.
Revenue Decline Following Fee Changes
According to data from CryptoQuant, Tron’s total daily network fees dropped to $5 million on September 7, the lowest level in over a year. Just before the adjustment, on August 28, daily revenue stood at $13.9 million.
This reduction followed the approval of Tron Proposal #789, which became active on August 29. It lowered the energy unit price from 210 sun to 100 sun, cutting transaction costs by 60%.
Community Discussion on Fee Reductions
The proposal was issued by GrothenDI in August, aiming to create more user activity on Tron. The proposal stated: "*This change will ensure the sustainable and healthy development of the Tron ecosystem,*".
The adjustment was expected to boost new transactions by lowering transfer costs for users. GrothenDI estimated that the lower fees could allow for an additional 12 million transfers on the network, creating new activity that would help balance the lower revenue. However, Super Representatives, who validate and produce blocks on Tron, experienced the direct impact of the reduced revenue.
Tron's Leading Position in Blockchain Revenue
Even with reduced fees, Tron remains the leading layer-1 network in terms of revenue. Data from Token Terminal showed that over the past week, Tron captured 92.8% of the total revenue among layer-1 blockchains.
In the last 90 days, fees generated on Tron reached $1.1 billion, far ahead of Ethereum, Solana, BNB Chain, and Avalanche. However, Ethereum continues to lead over a longer timeframe, with $13 billion in revenue over the past five years compared to Tron’s $6.3 billion.
The reduction in transaction fees on the Tron platform has led to a sharp decline in block producers' revenue. Nonetheless, Tron holds a strong position among layer-1 blockchains, and the long-term impact of the fee reduction on user engagement will depend on its ability to attract new users.
