Tron Sees Double Rise In Fees And Revenue
The Tron network, as revealed by the on-chain analytics platform, DefiLlama, has witnessed a double spike in its daily transaction volume. It recorded $1.39 million in protocol revenue in the past 24 hours.
This comes days after the Tron community approved the network’s Proposal 83.
A Double For Tron
According to reports, the latest event almost doubled the fees and revenue recorded by the network in the first few days of February after the Tron community voted to pass Proposal 83. On that day, DefiLlama data revealed that Tron earned roughly $689K in total revenue and fees, which makes the current milestone impressive.
In comparison, only Ethereum and Uniswap fared better than Tron in the same timeframe, with $4.62 million and $3.287 million in fees and revenue, respectively. DefiLlama data further showed that the network’s highest transaction amount so far in this year is $1.61 million.
It achieved this feat on February 8, a couple of days after the community approved the proposal’s passage. As revealed by the network, Proposal 83 is designed to stop low-value contracts from taking over the execution time.
It is a method established by the Tron network to facilitate the regulation of energy allocated to smart contracts. According to the proposal, the energy demand of smart contracts can dynamically change in response to the funds it utilizes for execution.
Furthermore, before the proposal’s passage, contracts with lower values occupy 85% of the CPU processing time on the Tron network. However, without affecting other decentralized applications (dApps), the dynamic energy system would increase the cost of the low-value and fraudulent transactions that hinder the CPU from having a quick execution time.
Controversy Over Withdrawal Fees
Meanwhile, Proposal 83 has its fair share of controversy after the Tron community voted for its passage. Some days after the passage of the proposal, Binance, in an unexpected move, announced that it would upwardly review the Tron network withdrawal fees.
The move generated widespread criticism on Crypto Twitter, with Tron founder Justin Sun pledging to find a way to reduce the transaction fees. Ultimately, Binance revealed that it had reduced the withdrawal fees for the Tron network back to its previous level.
Before the proposal, fee adjustments on Binance show that USDT, TUSD, and USDC withdrawals would have attracted a 2.6 charge per withdrawal, up from 1 USDC, USDT, or TUSD.
The charge for BUSD withdrawals is 2.2 BUSD, and the transaction fee for Tron’s native asset, TRX, is 40 TRX. As expected, many fear the hike in withdrawal fee would significantly affect crypto asset trading on the network and the price of TRX.
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