46% of TRX supply is staked today, equating to 43.8 billion TRX. The growth in the amount of staked TRX on the TRON network is important for network security and efficiency as: 1. A higher amount of staked TRX means more tokens are participating in electing Super Representatives (validators), and 2. Staking TRX provides bandwidth and energy to users and DApps, lowering transaction costs.
More than half of the total staked TRX has been done using the Stake 2.0 model. The amount of TRX staked under this model has grown to 24.3 billion, representing 55% of the total staked TRX. Stake 2.0 is a major upgrade introduced in 2023 to improve flexibility, transparency, and DApp user experience.
The amount of TRX staked to get energy has more than doubled in the last year. The total amount of TRX staked for energy is 17.2 billion today, a 129% increase from the 7.5 billion TRX staked for energy a year ago. Energy is required to execute smart contracts, and a higher amount of TRX staked for energy implies rising demand for contract execution and potentially a gasless UX, where users don’t need to freeze TRX to pay for transactions.
Growing network activity is evident in the expansion of bandwidth and energy consumption. The total bandwidth consumption on the TRON network has grown 50% in the past year, while energy consumption has increased 167% in the same period. Both metrics indicate higher activity on the network due to more transactions and smart contract execution. Moreover, 80%+ of bandwidth and energy consumption is coming from staked TRX, implying TRON's resource model works by incentivizing users and Dapps to stake TRX to lower transaction costs. Additionally, the energy paid by smart contract deployers, which subsidizes transaction costs for users, has maintained a strong annual growth of 1577% YoY.
Most energy on TRON is consumed by USDT transfers. Currently, 95% of the network energy is consumed on the TRON network by USDT transfers.
Written by CQ Research
