Tron, the blockchain network founded by Justin Sun, implemented a significant fee reduction on August 29, 2025, following the approval of Proposal #789 by its Super Representatives. The proposal lowered the energy unit price on the network from 210 sun to 100 sun, resulting in a 60% reduction in gas fees. This adjustment means a standard transaction on Tron now costs less than a cent, making it significantly cheaper than Ethereum, where fees range from $1 to $20.
The immediate impact was a sharp decline in revenue for Tron's block producers. Daily fee revenue plummeted from $13.9 million the day before the change to $5 million by September 7—a 64% drop in just 10 days and the lowest level in over a year. For context, Tron's daily fee revenue had averaged between $10 million and $15 million throughout most of 2024.
Despite the revenue compression, user engagement surged. Daily active addresses reached over 2.53 million in the 10 days following the change, reflecting increased network participation. The fee cut is expected to unlock an additional 12 million transactions, potentially boosting Tron's average daily transaction throughput from 4.5 million by more than 250%.
Tron continues to dominate transaction-based income among major layer-1 blockchains. Over the past 90 days, it generated $1.1 billion in fees, capturing 92.8% of total L1 revenue—ahead of Ethereum, Solana, BNB Chain, and Avalanche. This dominance is largely driven by Tether's USDT stablecoin, with more than 50% of its $118 billion supply circulating on Tron, making it the primary settlement layer for stablecoins, especially in Asia and emerging markets.
The move reflects an ongoing balancing act in blockchain design: lower fees attract users and boost transaction volumes but reduce validator income. Some analysts warn that prolonged revenue compression could affect Super Representatives' incentives, potentially leading to centralization risks if smaller operators exit. Others argue that higher transaction throughput could offset revenue losses over time, particularly if Tron consolidates its role as the dominant stablecoin rail.