Tron validators revenue plunged after Proposal #789 halved energy costs, cutting daily Super Representative earnings from about $14M to $5M; despite this, Tron outpaces Ethereum in short‑term layer‑1 fee revenue, driven by high transaction volume and lower per‑transaction costs.
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Revenue drop: Daily block‑producer earnings fell from ~$14M to ~$5M after fee changes.
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Fee policy change: Proposal #789 reduced energy cost from 210 sun to 100 sun, cutting average gas fees ~60%.
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Market position: Tron accounted for ~92% of weekly layer‑1 revenue, with $1.1B in fees over the past three months.
Tron validators revenue collapses after fee cuts; daily earnings hit $5M. Learn what Proposal #789 means for fees, producers, and users — read our analysis now.
What caused the collapse in Tron validators revenue?
Tron validators revenue fell sharply after the community approved Proposal #789 in late August, which halved the energy‑unit cost used to calculate transaction fees. The change reduced average gas fees by roughly 60%, dropping daily block‑producer earnings from nearly $14 million to about $5 million within days.
How did Proposal #789 change Tron’s fee model?
The proposal cut the energy unit price from 210 sun to 100 sun. One TRX equals one million sun, so the new rates materially lower user costs at scale. Community author GrothenDI argued the cuts would stimulate usage, potentially unlocking an estimated 12 million additional transactions if demand responds.
How significant is Tron’s short‑term lead over Ethereum?
In the short term, Tron generated substantially more fee revenue than other layer‑1 blockchains. Token Terminal data cited in this report shows Tron accounted for about 92% of weekly layer‑1 revenue and collected roughly $1.1 billion in fees over the past three months.
| Blockchain | Last 3 months | Last 5 years |
|---|---|---|
| Tron | $1.1B | $6.3B |
| Ethereum | — | $13B |
| Others (Solana, BNB, Avalanche) | Combined smaller share | — |
What does this mean for validators, users, and the network?
Validators (Super Representatives) face immediate revenue pressure due to lower per‑transaction fees. Users benefit from cheaper transactions, which can increase on‑chain activity. Network economics shift toward higher throughput and lower margins for block producers, testing whether volume gains offset lower unit revenue.
Frequently Asked Questions
Will lower fees permanently reduce validator rewards?
Not necessarily. If transaction volume increases enough, total fee revenue can recover. Short‑term daily earnings fell to ~$5M, but long‑term effects depend on user adoption and on‑chain activity growth.
How many transactions could Tron gain from the fee cut?
Proposal author GrothenDI estimated the change could unlock more than 12 million additional transactions if market response follows projections; actual growth will be measured in subsequent weeks and months.
Key Takeaways
- Revenue drop: Daily Super Representative earnings collapsed from ~$14M to $5M after energy unit price was cut.
- Lower fees, higher accessibility: Average gas fees fell ~60%, reducing user cost and potentially boosting volume.
- Short‑term market leader: Despite the revenue hit, Tron led layer‑1 fee generation in the measured week, with Token Terminal data showing ~92% share.
Conclusion
Tron’s fee overhaul via Proposal #789 caused a swift decline in validator revenue while making transactions materially cheaper for users. This trade‑off highlights a strategic pivot toward volume‑driven growth. Market observers should watch on‑chain metrics and fee totals over coming months to judge whether increased activity will restore or exceed prior revenue levels.
Author: Alexander Zdravkov — Reporter, COINOTAG. Published: 13 September 2025 | 13:03.
