Adjust the unit price of energy to 0.5 times the current price, after the change, the unit price of energy will be 420 sun.
Motivation
The TRON network is well known for its advantages of low transaction fees and fast transfer speed. In the past few months, the average daily transaction volume of the TRON network was about 5 million, almost 5 times that of Ethereum, maintaining an extremely incremental trend.
Specifically, the volume of smart contract transactions has increased by 50% in recent months, the rapid growth of transactions brings pressure on the network and databases, so we need to relieve the pressure properly. After analysis, it is found that a considerable proportion of the transactions are made of low-value and even malicious transactions, which encroach on the network resources and affect the development of the whole ecosystem.
Currently, we need to raise the energy price to inhibit those low-value transactions, and in the meantime fight against malicious transactions and behaviors, therefore mitigating the transaction booming pressure on the network, making a healthier developing ecology, and furthermore, facilitating the staking and deflation rate of TRX according to former experiences.
Combining measurement with experiences in the past, such a proposal would not have an impact on high-value transactions, meanwhile, we also encourage other developers in the community to make more ideas and contributions to further mitigate the influence on other transactions in the ecosystem.
Timeline
The estimated timeline,
Creation time of the voting request: 1th December 2022
The effective time of voting request: 4th December 2022
How to Initialize the Voting Request
Change the unit price of energy to 420 sun (wallet-cli)
createProposal 11 420 47 15000000000
Background
At present, the TRON network is terrifically active, the daily smart contract transactions increased significantly, from 1.4M to more than 2M per day in the past months, which we may find in the diagram below,
We have also seen some small-amount TRC20 transfers on the chain, according to statistics, more than 17.5% of TRC20 transactions on the chain are less than $0.1, and the proportion is increasing, below is the historical data,
Last week
Last month
Last 3 months
Total TRC20 transactions
15,312,542
60,241,106
140,067,880
Transactions less than $0.1
5,046,521
19,071,347
24,303,059
Proportion
32.96%
31.66%
17.35%
The unit price of energy has been raised three times, firstly raised from 10 sun to 40 sun on 25th Nov. 2020, secondly raised from 40 sun to 140 sun on 11th Feb. 2021, and thirdly raised from 140 sun to 280 sun on 28th October. 2021 and in the months that followed, the daily Net new TRX has been greatly reduced due to more TRX burned. For details, see https://tronscan.org/#/data/charts/supplyhttps://tronscan.org/#/data/charts/supplyAndDestroy
On the other hand, due to the increased fees, users will get energy by staking TRX to reduce the consumption of TRX. With the increase in fees, the TRX staking ratio also shows a growing trend. For detail, see https://tronscan.org/#/data/charts/OverallFreezingRate.
The following two graphs show that the number of energy obtained by burning TRX decreaseed between November 2020 and April 2021, no increase and decrease from April 2021 to now, while the number of energy obtained by staking TRX is increasing. Check detail at https://tronscan.org/#/data/stats/EnergyConsume.
Data Analysis
After the energy fee is increased from 280sun to 420sun, the TRON transaction fee is still much lower than that of Ethereum. The rise in the fee will greatly expand the deflation rate and increase the TRX staking rate.
Below is the detailed analysis.
Transaction fee comparison with ETH
The transaction fee of TRON is still much lower than that of Ethereum after the unit price of energy is increased to 420sun, the following fees are based on the average value obtained from the historical data of the last month,
Ethereum Dapps
Average Gas Price
Average ETH price
Average Fee
Uniswap
20.89
$1451.82
$5.8
Compound
20.89
$1451.82
$2.12
USDT
20.89
$1451.82
$0.70
TRON Dapps
TRON（280 sun）
TRON（420 sun）
Sunswap
$0.635
$0.952
Justlend
$0.930
$1.395.82
USDT
$0.250
$0.355
Effect of fee adjustments on inflation
The inflation rate will be reduced from -1.39% to -3.17% after unit price of energy is increased to 420sun, the TRX annual burning volume will be increased from 3,236,015,540 to 4,769,344,770, please check the detailed in the table below,
Last month
Future
The price of bandwidth
1000 sun
1000 sun
The price of energy
280 sun
420 sun
TRX daily burned for bandwidth
463,992 TRX
463,992 TRX
TRX daily burned for energy
8,401,804 TRX
12,602,706 TRX
TRX annual burning volume
3,236,015,540 TRX
4,769,344,770 TRX
TRX daily produced
5,062,464 TRX
5,062,464 TRX
TRX daily net increment
-3,803,332 TRX
-8,004,234TRX
Inflation rate
-1.39%
-3.17%
Effect on staking rate
The overall staking rate is on the rise after the energy fee in October 2021 was increased from 140sun to 280sun, below is the historical data，
We assume the relationship between resource cost and staking amount is a linear relationship, so here is the calculation:
From 140sun to 280sun, the unit price of energy has doubled, and the staking rate has increased by about 33%, Therefore, when the energy price is changed to 420sun, we can estimate that the staking rate will increase by 16.5% on the basis of 43.81%, that is 51%.
Simple Summary
Adjust the unit price of energy to 0.5 times the current price, after the change, the unit price of energy will be 420 sun.
Motivation
The TRON network is well known for its advantages of low transaction fees and fast transfer speed. In the past few months, the average daily transaction volume of the TRON network was about 5 million, almost 5 times that of Ethereum, maintaining an extremely incremental trend.
Specifically, the volume of smart contract transactions has increased by 50% in recent months, the rapid growth of transactions brings pressure on the network and databases, so we need to relieve the pressure properly. After analysis, it is found that a considerable proportion of the transactions are made of low-value and even malicious transactions, which encroach on the network resources and affect the development of the whole ecosystem.
Currently, we need to raise the energy price to inhibit those low-value transactions, and in the meantime fight against malicious transactions and behaviors, therefore mitigating the transaction booming pressure on the network, making a healthier developing ecology, and furthermore, facilitating the staking and deflation rate of TRX according to former experiences.
Combining measurement with experiences in the past, such a proposal would not have an impact on high-value transactions, meanwhile, we also encourage other developers in the community to make more ideas and contributions to further mitigate the influence on other transactions in the ecosystem.
Timeline
The estimated timeline,
How to Initialize the Voting Request
Change the unit price of energy to 420 sun (wallet-cli)
Background
At present, the TRON network is terrifically active, the daily smart contract transactions increased significantly, from 1.4M to more than 2M per day in the past months, which we may find in the diagram below,
We have also seen some small-amount TRC20 transfers on the chain, according to statistics, more than 17.5% of TRC20 transactions on the chain are less than $0.1, and the proportion is increasing, below is the historical data,
The unit price of energy has been raised three times, firstly raised from 10 sun to 40 sun on 25th Nov. 2020, secondly raised from 40 sun to 140 sun on 11th Feb. 2021, and thirdly raised from 140 sun to 280 sun on 28th October. 2021 and in the months that followed, the daily Net new TRX has been greatly reduced due to more TRX burned. For details, see https://tronscan.org/#/data/charts/supply https://tronscan.org/#/data/charts/supplyAndDestroy
On the other hand, due to the increased fees, users will get energy by staking TRX to reduce the consumption of TRX. With the increase in fees, the TRX staking ratio also shows a growing trend. For detail, see https://tronscan.org/#/data/charts/OverallFreezingRate.
The following two graphs show that the number of energy obtained by burning TRX decreaseed between November 2020 and April 2021, no increase and decrease from April 2021 to now, while the number of energy obtained by staking TRX is increasing. Check detail at https://tronscan.org/#/data/stats/EnergyConsume.
Data Analysis
After the energy fee is increased from 280sun to 420sun, the TRON transaction fee is still much lower than that of Ethereum. The rise in the fee will greatly expand the deflation rate and increase the TRX staking rate.
Below is the detailed analysis.
Transaction fee comparison with ETH
Effect of fee adjustments on inflation
The inflation rate will be reduced from -1.39% to -3.17% after unit price of energy is increased to 420sun, the TRX annual burning volume will be increased from 3,236,015,540 to 4,769,344,770, please check the detailed in the table below,
Effect on staking rate
The overall staking rate is on the rise after the energy fee in October 2021 was increased from 140sun to 280sun, below is the historical data，
We assume the relationship between resource cost and staking amount is a linear relationship, so here is the calculation:
From 140sun to 280sun, the unit price of energy has doubled, and the staking rate has increased by about 33%, Therefore, when the energy price is changed to 420sun, we can estimate that the staking rate will increase by 16.5% on the basis of 43.81%, that is 51%.