The TRON Super Representative Council has put forward a new proposal(Proposal 94) to raise the network’s energy cap to 150 billion. This marks a 20% adjustment following the previous increase to 120 billion. The new proposal is made to improve the TRX staking rewards by generating more energy which will help reduce network fees on the TRON network. If approved, the change is expected to take effect by Friday(13th September 2024) at the latest.

The Tron Super Representative Council has proposed raising the energy cap to 150 billion. This is another adjustment following the previous increase to 120 billion, aimed at allowing TRX staking to generate more energy, thereby reducing network fees and boosting network activity.…

— H.E. Justin Sun(hiring) (@justinsuntron) September 11, 2024

TRON’s Energy and Cap Adjustments

TRON operates a one of a kind resource management system that splits the cost of network transactions into energy and bandwidth. Bandwidth is typically used for basic transactions like transfers, while energy is essential for more complex smart contract executions. Energy can either be acquired by burning TRX tokens or by staking TRX, offering a low-cost alternative for frequent users and developers.

The recent history of energy cap adjustments makes it apparent that TRON’s focus is on increasing user benefits while maintaining network efficiency. The previous increase to 120 billion energy was part of a broader strategy to accommodate growing activity on the network and to incentivize staking. With more energy available to TRX stakers, users are able to execute smart contracts without depleting their TRX reserves for transaction fees. The newly proposed increase to 150 billion further underscores TRON’s efforts to expand network capacity and reduce financial barriers for its users.

The Impact of Raising the Energy Cap

If the proposal to raise the energy cap to 150 billion is approved by the super representatives, it will have several key impacts on the TRON network:

1. Lower Transaction Costs: With more energy available through staking, users will not need to burn as much TRX to cover transaction fees. This makes interacting with the network more cost-effective, particularly for developers running smart contracts and dApps.
2. Increased Network Activity: Lowering the cost of network interactions is likely to encourage more users and developers to engage with the TRX network, resulting in an increase in overall transaction volume.
3. Enhanced Staking Incentives: TRX stakers will generate more energy under the new cap, making staking a more attractive option on the network. In turn, this strengthens the network’s decentralization and security.
4. Developer and dApp Ecosystem Growth: As transaction costs decrease, the barrier to entry for developers and projects building on TRX also lowers.

With the proposed energy cap increase, TRX is positioning itself as a trailblazing blockchain network offering both low transaction costs and high incentives for staking. As other blockchains explore solutions to fee-related issues, TRX’s energy model remains a competitive and innovative approach.

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