Committee Proposal 79
Committee proposal 79 is a voting proposal for the №11 and №47 network parameters, modifying the unit price of energy from 280 sun to 420 sun and modifying the upper limit of the feelimit parameter from 10,000 TRX to 15,000 TRX. The №79 committee proposal is already in effect, please refer to here, this post is dedicated to provide more details and make it clearer.
Why raise the energy price?
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, raising the energy price inhibits 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.
How to adapt to the increase in the energy price?
The resource cost incurred by the smart contract transaction will be calculated based on the new energy unit price. It is recommended that developers and users stake TRX to obtain free energy to reduce costs, staking TRX for resources is still the best option for developers and users.
Developers and users should make preparations for adapting to the new unit price to ensure the normal operation of DAPP, If your current feelimit setting is similar to the actual transaction fee, it is recommended to increase the feelimit value in the transaction by more than 0.5 times. If your current feelimit setting is more than 0.5 times the actual transaction fee, you do not need to modify it.
On-chain data analysis after the fee increase
After the energy fee is increased from 280 sun to 420 sun, 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
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(2022.10.01~2022.11.01).
The inflation rate will be reduced from -1.39% to -3.17% after the 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.
The overall staking rate is on the rise after the energy fee in October 2021 was increased from 140 sun to 280 sun, below is the historical data，
We assume the relationship between resource cost and staking amount is linear, 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%.
The increased unit price of energy will further increase the staking rate and total staking amount of the whole network, reduce TRX circulation, and as a result, promote TRX value. At the same time, it will effectively restrain the growth of the number of low-value smart contract transactions and reduce the harm they may bring, thereby improving the security and reliability of the TRON network.