Gastronomic-Paradise

Tron suggests halving transaction fees - Assessing potential inflation impact on TRX

Tron's proposed reduction in transaction fees edges closer to realization following the surpassing of a significant vote threshold. However, this move might have implications for TRX.

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2025 September 6 . 1:30 PM

2 min read

Tron suggests halving transaction fees - Is the potential inflation increase manageable for TRX?

Tron suggests halving transaction fees - Assessing potential inflation impact on TRX

Tron's proposal to reduce transaction fees by half is gaining positive momentum ahead of the voting deadline on the 29th of August. The initiative, aimed at enhancing Tron's competitiveness and ecosystem growth, could potentially sail through unopposed, as 17 out of 27 Super Representatives have already voted in favour.

If the proposal passes, Tron could become an even more attractive platform for stablecoin transfers, particularly for USDT, in emerging markets like South America, Asia, and Africa. This is due to Tron's low cost, which makes it a viable alternative in regions where traditional methods may be expensive.

Currently, Tron is the second-largest network in terms of stablecoin dominance, handling over $82 billion. However, it's worth noting that, on average, Ethereum's transaction fee has been approximately $0.75, while Tron charged $1.7, over 2x higher, according to Token Terminal data. This trend has been relatively more expensive to use Tron for stablecoin transfers than Ethereum for the past six months.

The lower fees could attract more transactions and facilitate the future burning rate of the TRX token, potentially offsetting the inflationary trend. However, the team has highlighted that lowering transaction fees could have unintended consequences that could impact TRX price action in the near term.

As of press time, 20 super representatives have voted for the proposal, while seven are yet to make a decision. The proposal only needs a minimum of 18 'YES' votes out of the 27 super representatives to pass.

In addition, there has been a notable whale accumulation trend for TRX in the past few days. The market is currently awaiting clear direction from Bitcoin for TRX price action.

It's important to remember that Tron, currently second only to Ethereum [ETH] in terms of network size, is positioning itself as a robust and competitive platform in the crypto space. The outcome of the proposal could significantly impact its standing and potential growth.