#38 Proposal to reduce energy limit to 90b

Proposed by: CryptoGuyInZA
Status: Active (https://tronscan.org/#/proposal/38)

  • #19 Propose to modify current energy limit to 90b energy point

This document intends to present concrete data regarding energy consumption and TRX inflation/deflation, in order to support the proposal of reducing the total energy limit.


Proposals #13 and #9 (increase current total energy limit to 100b/modify energy fee to 0.00001 TRX) from December 2018, was addressed to reduce smart contract costs in order to bring more dApp creators attention to Tron network. At the time Tron Virtual Machine was just released and we needed to incentivise developers to migrate to Tron network. The proposal was approved by majority of elected SRs, and accomplished it’s objective by bringing to Tron hundreds of new dApps, making into Top activity smart contracts among all other available options. Also brought to Tron ecosystem 27% of all shares of the largest stable coin (USDT).

Proposal #27 (increase vote/block rewards) from November 2019, was addressed in order to make Tron more competitive compared to other dPOS currencies. The issue at the time was that the incentive to vote was not sufficient to attract the community or institution to freeze and stake when compared to other dPOS systems. The proposal was approved by majority of elected SRs, and accomplished it’s objective by removing from the market (by freezing) ~8B TRX (2x more than we have before). This has also increased the minimum amount of votes needed to be a Tron SR. Increased from 200M TRX to 300M TRX. On the other hand, the inflation ratio increased to approximately 1.8% yearly (which is still low compared to other coins).


Tron has now grown with great applications. Smart Contract in its network has proven itself to be stable, fast and very much affordable. One could argue that in some scenarios it is free to run a dApp should enough TRX be frozen. The current high energy limit in the network allows users and institutions to acquire FREE Energy easily by freezing TRX. It’s time to move on and start collecting fees for its services.


Therefore, we are here to propose a reduction of 10% in total energy supply, with the aim to start collecting fees from network usage by changing parameter #19 to 90b energy points


Contract Calls since proposal #13

Recent daily energy consumption:

Contract x Total Transactions

By the charts presented here we can see that contract calls have a large participation in all transactions of the network (~95%). We can also notice that only ~33% of the smart contract transactions have actually TRX fees.

Even with the reduction of the free energy limit, smart contract calls in Tron network will still be one of the cheapest and fastest. For instance, if a user doesn’t have ANY free energy and pays for all energy fees in a single TRC20 transaction, it will cost from 10k to 30k energy points, at a ratio of 0.00001, the max cost would be 0.3TRX ($0.051). In comparison to Ethereum, a ERC20 (equivalent to TRC20) transaction would spend from 40k to 60k of gas. Ethereum in its regular state the value of 1 gas can be bid at 5-30 Gwei, and when the network is congested this number can easily reach 50-100Gwei. Assuming the regular lowest costs, an ERC20 transaction would cost about 0.001ETH ($0.24), even at the lowest gas price of 1-2 Gwei, this transaction would cost higher than a FULL FEE charge in Tron Network (without free energy). Besides, the users will have fast transaction experience with no holding transaction due to fee being to fee as users experience in Ethereum when the network is congested.

As an example of Tokens burned in Ethereum, according to Eth Gas Station, USDT has burned $2.19M in the past 30 days with a little more of the double circulation of USDT market.

In Tron’s ecosystem, USDT only has used ~10.5B Energy points in the past 30 days. If all those transactions were charged 100%, we would have burned ~105M TRX in the past 30 days (reducing ~70% of current TRX inflation by dPos system).

In comparison to the total consumed energy in Tron’s ecosystem, we have an average of ~700b energy point in the last month. 100% charge of that consumption would be more than enough to make TRX enter in a deflationary ratio, while keeping the community engaged by voting.

Note: we are conservative in the changes, and are proposing a reduction of only 10% of current free energy limit. Based on impacts that this change may or may not cause, we can review and update this parameter in another proposal.

Why not reduce block/votes rewards instead of reduce contract free energy limit?

  • High network rewards are an incentive for users to freeze their assets. More frozen assets bring stability and security to the dPOS system. We think fees as payment for usage of a service. Contracts using the network, and making money from it, should be charged fees contributing to the ecosystem.

Expected outcome

By reducing the total energy supply we expect that users and dApps owners freeze more TRX to gain FREE Energy to reduce usage costs, bridging more players and stake to vote system.

With the frozen TRX, the players can also vote and receive rewards, which will allow them to cover for extra costs that they may have. This cycle of rewards/burn may also maintain or even reduce the inflation ratio, while the staked/frozen asset will secure the dPos system.

Note: this is not a permanent change, and we can revert if the majority agrees with it.


  • May increase frozen assets in network
  • May increase participation in vote system
  • Increase TRX burn ratio
  • Free energy limit does not have effect on the energy price, meaning transactions that are not using FREE energy will not be affected


  • Reduce FREE energy for smart contracts calls
  • May require more frozen assets from small developers to get FREE energy