TRON Slashes Network Fees by 60% in Historic Vote

On August 29, 2025, the blockchain’s Super Representatives voted to reduce transaction costs by 60%. This makes TRON much cheaper to use and could attract millions of new users.

The decision affects one of crypto’s busiest networks. TRON handles over 3 million transactions daily and hosts nearly $81 billion worth of Tether’s USDT stablecoin. The fee reduction went into effect at 8 PM Beijing time on August 29.

Why TRON Cut Its Fees

Transaction costs on TRON had gotten too expensive. The network’s native token TRX rose 126% over the past year, pushing fees higher. By June 2025, users were paying up to $2.50 per transaction – far above TRON’s reputation as a low-cost blockchain.

Justin Sun, TRON’s founder, explained the problem in a social media post. “In the short term, TRON’s profitability will be affected, since network fees are directly reduced by 60%,” he said. “However, in the long run, profitability will improve as more users and more transactions take place on the Tron network.”

The high fees were pushing users away. Many people in developing countries rely on TRON for cheap money transfers using USDT. When costs rose, they looked for alternatives. Aishwary Gupta from Polygon Labs told DL News that “fees on Tron have been rising tremendously, so people are looking at alternatives.”

Source: @justinsuntron

Competition also played a role. Bitfinex is preparing to launch Plasma, a new blockchain that will offer free USDT transfers. This puts pressure on TRON to keep its fees low.

How the Fee Cut Works

The technical change is simple but powerful. TRON reduced its energy unit price from 210 sun to 100 sun. This cut, known as Tron Improvement Proposal #789, makes every transaction 60% cheaper.

TRON’s fee system is unique. Users can either pay fees directly or “freeze” TRX tokens to get free transactions. This dual system has made TRON popular for high-volume activities like gaming and frequent transfers.

The network processes over 2,000 transactions per second. With lower fees, this capacity could attract even more users and developers.

Financial Impact on TRON

The fee reduction will hurt TRON’s revenue in the short term. Data from DeFiLlama shows the network earned $47.7 million per month in 2025. August alone brought in over $58 million before the change. A 60% cut could reduce monthly revenue by around $28 million.

However, TRON’s leaders believe volume will make up the difference. The network already handles 8-9 million daily transactions. If cheaper fees attract more users, total revenue could eventually grow despite lower individual fees.

TRON dominates the stablecoin market, especially USDT transfers. The network hosts about 30% of all stablecoins globally. This massive market share gives TRON leverage to sacrifice short-term profits for long-term growth.

Market Response and Future Plans

TRX token prices stayed relatively stable after the announcement. The token trades around $0.34, down about 20% from its December 2024 peak. Technical indicators show neutral momentum, with support at $0.34 and resistance near $0.36.

TRON’s approach to fees will become more dynamic. The Super Representative community plans quarterly reviews of transaction costs. They’ll consider TRX price changes, network activity, and growth rates when setting fees. This flexible system should help TRON stay competitive as market conditions change.

The network’s fundamentals remain strong. TRON ranks as the fifth-largest blockchain by total value locked, with over $6 billion. Stablecoin supply on the network has grown 40% since early 2025.

What This Means for Users

The fee reduction offers real benefits for TRON users. Developers can build and deploy applications more cheaply. Regular users pay less for transfers and smart contract interactions. This is especially important in developing countries where people use USDT for everyday payments.

TRON’s 60% fee cut represents a major shift in blockchain economics. By prioritizing user adoption over immediate profits, the network is betting on volume growth. If successful, this strategy could cement TRON’s position as the go-to blockchain for stablecoin transactions and everyday crypto use.