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Tron cut transaction fees by 60% last Friday. While this looks like a move to improve accessibility, the real driver is almost certainly the looming launch of Plasma, which will enable zero-fee USDT transfers.

Tron’s moat has always been its distribution. Users continue to transact on Tron despite much cheaper alternatives, a sign of the deep merchant and banking ties it has built, especially in Latin America. The fact that Tron is now lowering fees could suggest this moat is being threatened.

The stakes are high. Around 90% of Tron’s revenue comes from USDT transfers. Even after the…

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