Tron’s Fee Reduction Cuts Daily Block Producer Revenue by 64%
Tron’s decision to reduce transaction fees has substantially impacted the daily revenue of its block producers, known as Super Representatives. According to CryptoQuant data, daily network fees fell sharply to $5 million on September 7, marking the lowest level in over a year and representing a 64% decrease from $13.9 million just 10 days earlier.
Significant Drop in Gas Fees Following Proposal #789
The decline in revenue corresponds with a 60% reduction in average gas fees on the Tron network. This change followed the implementation of Proposal #789, which lowered the energy unit price from 210 sun to 100 sun. One sun is the smallest unit of TRX, Tron’s native token, with 1 TRX equal to 1 million sun.
The proposal, introduced by community member GrothenDI and approved by the Super Representative community on August 29, aimed to promote the sustainable growth of the Tron ecosystem by making transaction costs more affordable. GrothenDI projected that the fee reduction could drive up to 12 million additional transfers by users.
Tron Maintains Revenue Leadership Among Layer-1 Blockchains
Despite the sharp revenue decline, Tron continues to dominate revenue generation compared to other layer-1 blockchains. Data from Token Terminal shows that Tron accounted for 92.8% of total revenue among leading layer-1 networks over the past seven days, outperforming Ethereum, Solana, BNB Chain, and Avalanche.
Over the last 90 days, Tron’s transaction fees totaled approximately $1.1 billion, underscoring its strong position in blockchain revenue despite recent fee cuts.
FinOracleAI — Market View
Tron’s substantial fee reduction has led to a pronounced short-term revenue decline for block producers, which may pressure network incentives if the trend persists. However, the lower fees are intended to stimulate higher transaction volumes, potentially offsetting revenue losses over time. Investors should monitor whether increased user activity materializes as forecasted and how this impacts long-term network sustainability and revenue dynamics.
Impact: negative
