Tron's (TRX) proposal to cut transaction fees in half has received positive support ahead of the voting deadline on August 29.
As of the time of writing, 20 super representatives have voted in favor of the proposal, while seven others have yet to make a decision.
Since the proposal only requires a minimum of 18 "yes" votes out of a total of 27 super representatives to pass, this means it can be easily approved without opposition.
Impact on TRX and market competition
The proposal was first introduced in early August, with the goal described by the development team as aiming to "enhance Tron's competitiveness" and promote ecosystem growth.
"Currently, transaction fees on Tron continue to rise, so reducing fees is necessary to enhance Tron's competitive advantage and promote ecosystem growth."
In comparison, Tron is the second-largest network in terms of stablecoin dominance, processing over $82 billion, second only to Ethereum (ETH).
Tron has become a popular alternative for transferring stablecoins, especially USDT in emerging markets like South America, Asia, and Africa due to low costs.
However, it has been noted that this changed in early 2025. Over the past six months, using Tron to transfer stablecoins has become more expensive compared to Ethereum.
On average, Ethereum's transaction fees are around $0.75, while Tron charges $1.70 – more than double, according to data from Token Terminal.
Unlike in 2024 – when Ethereum charged transaction fees of over $5, the current low fees could help Ethereum attract more liquidity from Tron. Therefore, this proposal is seen as reasonable to keep Tron competitive.
However, if approved, the proposal could also bring unintended consequences, negatively impacting TRX in the short term.
The team emphasizes that the 50% fee cut will make the supply of TRX inflationary, adding over 66 million tokens.
This could put pressure on TRX's price movements in the short term.
However, the project also notes that lower fees could attract more transactions and support the "burn" rate of tokens in the future, thereby offsetting inflationary trends.
"Reducing transaction fees could stimulate increased trading volume, thereby boosting the TRX burn scale in the future."
Meanwhile, in recent days, there has been a notable accumulation trend from whales for this altcoin.
However, the price action remains stuck near the bottom of the trading range around $0.34 as the market waits for clear signals from Bitcoin.
