# Simple Summary

Modify the parameters related to the bandwidth model to decrease the volume of low-value transactions in the network.

# Motivation
Recently, the transaction volume has grown rapidly in the TRON network. The daily network transaction volume exceeds 11 million, about 11 times that of Ethereum.

Based on statistics and analysis, it is found that there were a large number of low-value or even fraudulent transactions in the network. In addition, some accounts use daily free bandwidth to send large amount of low-value transactions, encroaching on network resources and seriously affecting the development of the entire ecology.

In order to solve these problems, it is proposed to decrease the volume of low-value transactions through the following 3 measures.

- Appropriately decrease `totalnetlimit`, which is the total bandwidth supply of the entire network
- Appropriately decrease `freenetlimit`, which is the daily free bandwidth for an account
- Appropriately increase `transactionfee`, which is the bandwidth unit price

The current cost of bandwidth in transactions is still very low, appropriately increasing the cost of bandwidth would not have an impact on normal transactions, meanwhile, I also hope that other developers in the community could make more ideas and contributions to further mitigate the influence on other transactions in the ecosystem.

# Specification
Propose to modify the chain parameter of `freenetlimit`,

- FreeNetLimit (No.61) = 600
Set the No.61 chain parameter to 600, it means adjusting the daily free bandwidth of every account to 600

# How to initiate the voting request
Modify the daily free bandwidth to 600,
- createProposal 61 600

# Background
At present, the average daily transaction volume on the chain has increased sharply, from about 8 million per day to over 11 million per day in the past month, as shown in the figure below, for details, refer to: https://tronscan.org/#/data/charts/txn/daily-txn


Based on statistics, about 75.34% of TRX transfer transactions are low-value transactions in the last 3 months, as shown in the table below.

|| Daily last week | Daily last month | Daily last 3 months|
| -------- | -------- | -------- |--|
| Total TRX transfer transactions | 5,054,115 | 4,586,870 | 4,409,105 |
| Transfer transactions with TRX < 0.1 | 4,006,043 | 3,559,799 | 3,321,912 |
| Proportion | 79.26% | 77.61% | 75.34% |

And around 44.86% of smart contract triggers are low-value transactions in the last 3 months, and it still delivers an increasing trend, as shown in the table below.

|| Daily last week | Daily last month | Daily last 3 months|
| -------- | -------- | -------- |--|
| Volume of smart contract triggers | 5,244,816 | 3,478,842 | 2,618,377 |
| Volume of low-value transactions | 3,661,780 | 2,026,656 | 1,174,615 |
| Proportion | 69.82% | 58.26% | 44.86% |

# Analysis
### Transaction fee comparison with Ethereum
According to data on the TRON network and the Ethereum network last month, the transaction fee of gas token and USDT comparison is shown in the table below.

| Ethereum Tokens | Average Gas Price | Average ETH Price | Average transaction fee |
| -------- | -------- | -------- |--|
| ETH | 17.68Gwei | $ 1750 | $ 0.72 |
| USDT | 17.68Gwei | $ 1750 | $ 2.18-3.34 |

| TRON Tokens | Average transaction fee |
| -------- | -------- |
| TRX | $ 0.019 |
| USDT | $ 0.9-1.82 |

Average transaction fees on the TRON network are still significantly lower than those on the Ethereum network.

### Current inflation on TRON
The TRX annual burning volume is 6,098,675,785, and inflation is -4.72% currently on TRON, as shown in the table below.

| | Last month |
| -------- | -------- |
| The bandwidth unit price | 0.001 |
| The energy unit price | 0.00042 |
| TRX daily burned for bandwidth | 1,058,642 |
| TRX daily burned for energy | 15,650,058 |
| TRX daily burning volume | 16,708,701 |
| TRX annual burning volume | 6,098,675,785 |
| TRX daily supply | 5,055,671 |
| TRX daily increment | -11,653,030 |
| Inflation rate | -4.72% |

And it is expected that the TRX annual burning volume will increase more, and inflation will decrease further if the parameters related to the bandwidth model are adjusted as suggested.

A comparison showing the relationship between free bandwidth and free transactions, is displayed in the table below,

| Daily free bandwidth | Daily number of free TRX transfers | Daily number of free TRC10 transfers | Daily number of free TRC20 transfers | Daily number of free TRC20 transferfroms |
| :---: | :---: | :---: | :---: | :---: |
| 1500 | 5.60 | 5.26 | 3.97 | 4.35 |
| 700 | 2.61 | 2.46 | 1.85 | 2.03 |
| 600 | 2.24 | 2.11 | 1.59 | 1.74 |
| 500 | 1.87 | 1.75 | 1.32 | 1.45 |

After the daily free bandwidth is set to 600, it will still support a user sending 2 free TRX/TRC10 transactions, or sending 1 free TRC20 transaction.