A recent article has proposed a decrease in the energy unit price on the TRON network, from 420 sun to 360 sun, in order to maintain its competitive advantage and reduce the cost of using dApps. The increase of energy unit price has improved the security and stability of the network, but also led to higher costs for dApp users.
The article suggests that a dynamic energy model, proposed by the community, can help strike low-value transactions without affecting other dApps. This, in turn, can create space for a decrease in energy unit price to further improve the network’s competitiveness.
Reducing transaction costs will lead to a decrease in TRX burn rate. Despite significant decreases, transferring USDT will still likely cost more than 10 cents. The future will show if other chains with lower transaction costs overtake TRON in the coming years.
The idea of a dynamic energy model to strike low-value transactions is a potential solution to balance the cost and security considerations. However, this would require careful evaluation of its effects on the network, and alternative solutions should also be considered.
A decrease in energy price on a blockchain network like TRON can potentially increase the number of transactions that can be processed, making it more accessible and cost-effective for users to interact with smart contracts and dApps on the network.
I also think , a lower energy price may also make it more attractive for developers to build and deploy their decentralized applications on TRON.
That tweet was about reducing withdrawal fees on Binance using Tron Network by freezing for energy.
About the proposal:
Lot of people talk about burns like if it automatically brings value to the coin which is imo a big mistake. The coin’s value depends on the market. If we burn a lot of trx, indeed the supply will get lower but it doesn’t mean the demand will stay stable or raise.
These past 2 years the cost of energy on Tron raised from about 20 SUN to 420 making it impossible for millions of people to use the chain. With Binance freezing TRX, users also need to freeze way more in order to get one free daily transaction.
As a result it became harder for the Network to attract builders and users. But this is actually what a blockchain needs the most: dapps, builders, users. Each time a new dapp joins a network, they create liquidity pools, they deploy contracts, they bring users, they boost the amount of tx. All of this raise the demand of trx and participate to the daily burn.
Reducing the cost of energy on Tron is imo healthier than running after big burns at any cost for the future of the chain.