The Tron (TRX) network is slashing transaction fees in an attempt to maintain its leadership in stablecoin transfers. The network's founder, Justin Sun, stated that the decision will reduce profitability in the short term but increase the number of users in the long run. Users Use Tron Network Most for USDT Transfers Today, Tron's block producers, or “super representatives,” approved a proposal to reduce transaction fees by 60%. Sun, speaking on the X platform, said, “In the short term, Tron's profitability will be affected because network fees are directly reduced by 60%. However, in the long run, profitability will increase with more users and more transactions.” This decision comes after transaction fees on the Tron network reached an all-time high in June. TRX, used to pay for transaction fees, has gained 126% in value over the past year. Related News: Latest Status Report for Ripple (XRP) Released! - Is the Network Healthy? Is There Danger on the Horizon? Tron, with approximately $81 billion in Tether (USDT) assets, is the most preferred blockchain for stablecoin transfers. Users, especially in developing countries, who want to avoid fluctuations in local currencies, prefer stablecoins like USDT for daily payments. However, the rise in transaction fees on Tron over the past year has led many users to turn to alternative networks. Polygon Labs' Aishwary Gupta said in July, “Tron fees have skyrocketed, and people are looking for alternatives.” The fee reduction comes ahead of Tether's sister company Bitfinex preparing to launch its new stablecoin-focused blockchain, called Plasma, with free USDT transfers. Analysts say Plasma could threaten Tron's position in the stablecoin market. Sun announced that Tron's super representatives will now conduct quarterly salary reviews. “Factors such as TRX price fluctuations, network activity, and growth rates will be considered. The goal is to strike a balance between profitability and competitiveness,” he said. *This is not investment advice. Continue Reading: A Major Update is Coming to Tron (TRX): It Will Affect Almost Everyone – Here Are the Details
