According to a new report from Cryptoquant, Tron’s recent fee reductions have been significantly reduced to revenues acquired by block producers.
The total daily network fees for Tron block producers, known as Super Representatives, fell to $5 million on September 7th, reaching its lowest level in more than a year. This is a 64% decline in revenue over the 10 days, starting from $13.9 million the day before low rates were implemented.
On-chain data shows that Tron’s average gas fees have decreased by 60% after the network implemented a proposal to reduce energy unit prices from 210 to 100 days. Gas charges are transaction costs paid over the Tron network and are measured in the smallest unit known as Sun.
Tron’s proposal #789, labeled “Reducing Transaction Fee,” was released on August 29th after a vote from the Super Representative Community.
Tron transaction fees from January 2024 onwards. source: Encryption
Community member Grothendi announced the proposal in August, claiming that lowering transaction fees would “ensure sustainable and healthy development of the Tron ecosystem.”
Grothendi estimated that reducing gas fees from 210 suns to 100 suns could result in 12 million potential transfers from users. One Tron (TRX) is equivalent to the lowest divided portion of the TRX, the million Sun.
Tron controls blockchain revenues among L1
According to data from Token Terminal, Proposal #789 cut Tron’s gas fees, but the blockchain still leads other layer 1 chains of revenue.
Over the past seven days, Tron has occupied 92.8% of the total revenues of the Layer 1 network prior to Ethereum, Solana, BNB chains and avalanches. Fees generated from Tron’s transactions have reached $1.1 billion over the past 90 days.
Revenue generated by Layer-1 blockchain over 90 days. sauce: Token terminal
Ethereum has led revenue generation at $13 billion over the past five years, compared to Tron’s $6.3 billion.
