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Tron Fee Revenue Hits Record High as Network Burns Over 12 Million TRX

Tron, a decentralized blockchain-based operating system with smart contract functionality, has seen a surge in its fee revenue and network activity in the past month. According to data from Tronscan, Tron fee revenue reached an all-time high of $1.758 million on February 20, surpassing its previous peak of $1.61 million on February 8. The fees charged by Tron are then burned, reducing the total supply of its native cryptocurrency, Tronix (TRX). The revenue profile is calculated based on the product of the daily amount of TRX burned and the daily closing price of TRX on CoinMarketCap.

Tron’s Protocol Revenue | Source: Tronscan

On February 20, the Tron network burned a total of 12,622,236 TRX, equivalent to about 0.08% of its total circulating supply of 15.8 billion TRX. This was the highest amount of TRX burned in a single day since the network switched its protocol from an ERC-20 token on top of Ethereum to an independent peer-to-peer network in June 2018. The average daily amount of TRX burned in February was 8,865,815 TRX, more than double the average of 4,113,571 TRX in January.

The increase in fee revenue and TRX burning is partly attributed to the passage of Proposal 83, a method established on the Tron network to execute a dynamic regulation of energy allocation for smart contracts. The proposal, which was approved by the Tron community on February 5, aims to raise the cost of low-value and suspected fraudulent transactions, which previously took up around 85% of the CPU execution time on the Tron network, without harming other decentralized applications (dApps). The proposal also intends to encourage more users to stake their TRX and obtain bandwidth and energy, which are essential resources for running smart contracts on the network.

Another factor that contributed to the growth of Tron fee revenue and network activity was the launch of BitTorrent Token (BTT), a TRC-10 utility token based on the Tron network that powers the features of the popular decentralized protocols and applications in the BitTorrent ecosystem. BitTorrent, a peer-to-peer file sharing service, was acquired by the Tron Foundation in July 2018. BitTorrent started its own token sale based on the Tron network in February 2019, raising $7.2 million in less than 15 minutes. BTT is designed to enable users to offer their computing resources in exchange for the token, as well as to access faster downloads, file storage, and content delivery.

According to data from DappRadar, Tron is currently the second most popular blockchain platform for dApps, behind Ethereum, with over 1,000 active dApps and over 100,000 daily active users. Some of the most popular dApps on Tron include JustSwap, a decentralized exchange protocol; JustLend, a decentralized lending platform; and WINK, a gaming and social platform. Tron also supports a variety of tokens, including stablecoins such as USDJ and USDT, and wrapped tokens such as WBTC and WETH.

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