- Tron’s daily revenue dropped from $13.9M to $5M after Proposal #789 fee cut.
- Gas fee reduced to 100 sun per unit, aiming for higher network adoption.
Tron blockchain introduced a significant gas fee cut that had a significant effect on network income in less than ten days. The daily revenue of the layer-1 network dropped to $5 million compared to the previous $13.9 million, which is a significant drop of 64%. Even with this notable decline, Tron continues to be the most popular revenue generator of major blockchain networks.
The decline in revenue is due to Proposal #789, which lowered the price of the units of energy to 100 sun instead of 210 sun. This was a strategic move to increase the network adoption by making transactions affordable to the users. The proposal was championed by community member GrothenDI, who believed that the reduced rates would promote sustainable development of the ecosystem.
Market Leadership Despite Revenue Decline
Even after a successful implementation of the fee reduction strategy, Tron remains on top of blockchain revenue metrics. In the last week, Tron has secured a significant share of 92.8% of all the revenue of all layer-1 networks. This impressive market share is even higher than such giants as Ethereum, Solana, BNB Chain, and Avalanche.
The network is estimated to have made about $1.1 billion in transaction fees in the last three months itself. These numbers show that Tron has a strong transaction volume and user base even after the recent pricing changes. The reduction fee plan seems to be meant to focus on long-term growth rather than maximizing revenue in the short term.
The analysis of CryptoQuant shows that the lowest point of daily revenue was reached on September 7th in more than a year. But the supporters of the proposal think that the higher volume of transactions will ultimately compensate for the lower charge per transaction. GrothenDI estimates that the reduced fees would result in 12 million more possible user transfers.
Traditionally, Ethereum has preserved the five-year leadership in terms of revenue with total earnings of $13 billion versus $6.3 billion of Tron. Nonetheless, the current market situation is likely to change in favour of Tron due to its recent dominance in the weekly revenue share.
The decrease in gas fees is an estimated risk to the Tron ecosystem development strategy. Though short-term revenue has been reduced considerably, the network is set to gain more users and transactions. Whether the high transaction volume will offset the low transaction cost per individual transaction will determine success. This change of direction is indicative of trends in the blockchain industry as a whole towards accessibility and user adoption, rather than direct revenue-generation.
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Source: https://thenewscrypto.com/tron-bets-big-on-user-growth-with-60-gas-fee-reduction/
