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- Tron’s 50% fee cut proposal has already secured enough votes to pass ahead of August 29.
- Lower fees could restore competitiveness against Ethereum but risk inflating TRX supply.
- Long-term growth may depend on whether higher adoption boosts TRX burning rates.
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Tron [TRX] is on the verge of passing a major proposal to slash transaction fees by 50%, a move designed to restore its competitive edge in the blockchain payments space. With 20 super representatives already voting in favor—surpassing the minimum 18 required—the decision looks set to be finalized ahead of the August 29 deadline.
Why Lowering Fees Matters for Tron
Tron has long been a go-to network for stablecoin transfers, especially USDT in emerging markets across South America, Asia, and Africa. Its low fees historically gave it an edge over Ethereum [ETH], where gas costs often soared above $5 in 2024.
But the landscape shifted in early 2025. Data from Token Terminal shows that Tron’s average transaction cost climbed to $1.70—more than double Ethereum’s $0.75. The reversal has put Tron at risk of losing users to Ethereum, despite handling over $82 billion in stablecoin volume.
By halving fees, Tron aims to enhance its ecosystem’s appeal, attract higher transaction volumes, and solidify its role as the second-largest network for stablecoin transfers.
Risks: TRX Inflation vs. Ecosystem Growth
While the fee reduction could restore Tron’s competitiveness, it also comes with trade-offs. According to project documentation, the change could inflate TRX supply by more than 66 million tokens. This additional supply may weigh on the token’s short-term price performance, which remains stalled near $0.34 as Bitcoin’s market direction dictates broader sentiment.
Also Read: Tron (TRX) Price Poised for $0.40 as Futures and Spot Demand Remain Strong
However, Tron’s team argues that increased network activity could offset inflationary pressures through higher token burning in the long run. Whale accumulation of TRX in recent days also suggests some investors see upside potential if the ecosystem regains momentum.
Outlook: Balancing Short-Term Pressure With Long-Term Growth
The upcoming vote marks a pivotal moment for Tron. Cutting fees could help the network reclaim its position as the most cost-efficient stablecoin transfer layer, though TRX may face short-term headwinds. If adoption rises and transaction volumes accelerate, the ecosystem could ultimately emerge stronger, reinforcing TRX’s role in the global blockchain economy.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
