The lower fees on transactions that Tron recently implemented have tangible implications for the earnings of its block producers (or Super Representatives, as they are called). $5 million, the daily producer fees for September 7, marked the lowest daily fee on the network in over a year, reflecting a $8.9 million or 64% drop from the $13.9 million producer earnings on September 1, 2023, and a drop of over $1.5 million in a span of just 10 days. This drop, in the earnings of block producers, came soon after execution of the Tron Proposal #789, “Decrease the Transaction Fees,” which, after the Super Representative community ratified it, went into effect on August 29.
Offered by a member of the community known as GrothenDI, the proposal to reduce the gas fee on the Tron network from 210 sun to 100 sun (now 100 sun) implying a 60 percent reduction in the fee. GrothenDI contended that the Tron ecosystem ancillary to the network will grow, and thus more gas will be used to complete transactions on the network, and a reduction in fees aimed to stimulate a $12 million increase on gas fee income.Diminished incomes for Super Representatives aside, Tron maintains a commanding position in revenue on a blockchain layer-1 network. In the past week, Tron has generated 92.8% of the entire revenue of layer-1 blockchains, and is above Ethereum, Solana, the BNB Chain, and Avalanche, as per the Token Terminal records. Compared to the revenue for the past 90 days, Tron amassed 1.1 billion dollars, the majority of which was derived from transaction fees. In the past 5 years, Tron has generated 6.3 billion dollars of revenue. Ethereum, although historically leading with 13 billion in revenue for the same period, is Tron’s performance that highlights the blockchain is clearly a powerful player.
Like before, Tron strategically reduces fees to increase user participation and transaction volume within the ecosystem, even at the expense of immediate revenue for block producers. Tron is interested to see the effects of Super Representatives revenues, as network activity and revenue position affordability will be coupled with leading position revenue.
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