TRON Proposal 51 Set To Make TRX Deflationary Asset
The new proposal would increase bandwidth & energy fees by 3,5x in order to encourage higher TRX freezing rate, reduce TRX in circulation & promote TRX's value increase through a deflationary model.
TRON (TRX) has experienced a weekly value rise of 47%, and a new proposal aimed at making TRX a deflationary asset is currently being voted on by TRON’s Super Representatives (SRs), further increasing the potential growth of TRX and TRX-based tokens.
Proposal 51 and its goals are simple and could be very impactful for the network:
Increase the current near-minimal fees for bandwidth and energy by 3,5 times in order to encourage higher freezing rate of TRX, diminish low-value transactions (spam txs), increase security, reduce TRX in circulation, and promote the increase of TRX’s value by eventually making TRX a deflationary asset.
Proposal 51 was fielded by Klever’s own Head of Blockchain Research and Development, Fernando Sobreira, under the TRON SR Crypto Chain.
The proposal suggests the following changes to the TRON protocol:
Modify the unit price of bandwidth, increase from the current 40sun to 140sun
Modify the unit price of energy, increase from the current 40sun to 140sun
Modify the configurable upper limit of fee limit, increase from the current 1000000000sun (1000 TRX) to 5000000000sun (5000 TRX)
To explain bandwidth and energy in simple words, TRON bandwidth allows users to perform transactions on the blockchain without paying extra gas fees, while energy is a special resource used to process smart contracts on the TRON network.
Proposal 51 is a result of discussions initiated during the last SR meeting where TRON’s representatives presented network statistics following the last energy price increases, which showed that the last upgrade did not reduce valuable transaction volume but it did increase the amount of frozen TRX in the network.
Following the last TRON Upgrade implemented through Proposal 48, the unit price of energy and bandwidth was increased from 10 sun to 40 sun on November 25, 2020. Since then, TRX’s daily supply output has been greatly reduced due to more burning from resource fees. The number of low-value transactions has also been significantly reduced. Security has been improved with the increase of the freezing rate. Meanwhile, the transaction volume has continued to rise, the increase in resource fees has a positive effect on the network.
However, although the situation of spam transactions has improved, such low-value transactions still exist, and Proposal 51 is aimed at removing their rate and mitigating the impact of such spam transactions. The other primary goal is to have players freeze more TRX in order to pay less transaction fees.
Potential risks involved in Proposal 51 would be higher costs for developers, users, and other players such as exchanges to use TRX and TRX-based assets, but this can of course be mitigated by freezing more TRX.
Moreover, the TRON network may be experiencing increased transaction fees similar to other popular smart contract blockchain chains such as Binance Smart Chain (BSC), although TRON blockchain still remains the faster in terms of speed and delivery.
It is important to note that TRON has grown exponentially over the past year to house the most active addresses of any blockchain, besides Bitcoin.
For instance, today on February 10, Bitcoin had 1.17 million active addresses, TRON 634k and Ethereum 604k. Comparing transaction count between these three dominant networks shows Bitcoin at 330k daily txs, TRON 3.18 million txs, and Ethereum 1.23 million txs. It is becoming clear that TRON’s speed for transaction delivery and relatively low transaction fees compared to other blockchains has facilitated this rise.
Moreover, USDTt (USDT-TRON) currently holds $10.5 billion USDT in assets running on the TRON network, which is roughly 1/3 of USDT-Tether’s total market cap of $30 billion.
The rest is primarily running on top of Ethereum with $19.1B, while the previously dominant BTC-based Omni has fallen to only hold $1.3B USDT. Once again, this clearly shows that low fees and fast transactions are what users and exchanges are seeking, as well as choosing.
To conclude, if the vote for Proposal 51 is passed, it will further increase the network freezing rate and total frozen amount, reduce TRX in circulation, promote the increase of TRX value, restrain the number of low-value transactions and reduce their harm, and improve the security and reliability of the TRON network.
Klever fully supports Proposal 51 as part of our goal for the whole blockchain ecosystem to grow together, increasing security, removing spam transactions, and valuing cooperation between validators and other players in the crypto industry.
Sincerely,
Misha Lederman
Director of Communications at Klever.io
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Si aumentan las tarifas muchos abandonarán el TRX Tron y perderá su pocision en la competencia de los primeros puestos.
What do you mean by spam trxs? Small trxs?! What if they're not spams! You shouldn't forget about newcomers and micro investors who are seeking an entry level to the blockchain tech.. You shouldn't forget that there are near to 6 billions newbs out there and that they'll enter the blockchain Era gradually, they' ll certainly need to experiment with low values as they learn .. The blockchain is a puzzle to most of the world, except the few experimented and early geeks, you shouldn't block the way for new people to engage with tron. And low fees also means "equal chances", that's what makes the blockchain unique, you can invest even few cents.. So by raising fees you are basically trying to turn tron to profit a specific class of users and banning all the rest as spammers.. You should think of other means to pump tron price.. You are not understanding that all the world's population is going to adopt blockchain services, we are in the exponential adoption phase.. The 51 should be reported to when full adoption is reached..