TL; DR
Full story
Today we’re going to talk about Tron.
Please, please – hold your boos.
We are aware that it is not the most loved blockchain out there, but this new announcement from Justin Sun (the founder) has broader implications.
They plan to eliminate all transaction fees for stablecoin transfers.
That sounds kind of ‘meh’ considering they already have relatively low fees compared to traditional options like bank and Western Union transfers, but it has some bigger implications for the crypto industry.
Let’s start with this:
Crypto is a competitive game. If a blockchain adopts a feature that users love, their competitors will do everything they can to copy it.
Fee-free transfers are the end game for transferring money, and everyone benefits – from low-income workers sending home $20 a week through Western Union, to the ultra-wealthy trying to move billions between their accounts.
And the name of the game in crypto is supporting more transactions (whether through games, social apps, or payments), which then funds the network and increases its value over time.
If this new move from Tron catches on, crypto has a clear opportunity to become the ‘no brainer’ move for much of the world to move their money.
“Okay, but no fees means no money goes back to the crypto networks. Guess that out to me.”
The step here is not to eliminate the fees, but to cover them on behalf of the end user, by investing a portion of the stablecoin dollars in reliable assets (such as government bonds) and using the profits to pay the fees.
Helluva concept!