Tron founder Justin Sun unveils plan for gasless stablecoin transactions

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Tron founder Justin Sun

7th July 2024 – (Hong Kong)  Justin Sun, the founder of Tron, has announced a pioneering initiative to create a gasless stablecoin solution aimed at enabling free peer-to-peer transfers. This innovative solution is scheduled for integration into the Tron blockchain in the fourth quarter of this year, with plans to extend support to Ethereum and other Ethereum Virtual Machine-compatible chains shortly thereafter.

According to Sun’s recent statement on the social media platform X, dated 6th July, the proposed stablecoin mechanism will allow users to perform transactions without incurring any gas fees, typically required for blockchain operations. “The fees are completely absorbed by the stablecoins themselves,” Sun elaborated, although details on the operational framework of this mechanism remain undisclosed.

This strategic move could potentially reshape the landscape for businesses considering the deployment of stablecoin services. “I am confident that such services will significantly ease the way large enterprises can introduce stablecoin functions on the blockchain, thereby pushing the envelope for broader blockchain adoption,” Sun remarked.

The push towards a gas-free transaction environment is also timely, considering Tron’s leading position in the peer-to-peer stablecoin transfer arena. Data from blockchain analytics firm Artemis, published on 27th June, indicates that Tron currently processes nearly two to three times the volume of its closest competitor, Ethereum, in this sector.

Moreover, Tron hosts over $50 billion of Tether’s USDT, a significant share of the $112 billion worth of the token issued across various blockchains, according to DeFiLlama. This substantial base could provide a robust platform for the proposed gasless transaction framework.

The development could position Tron as a formidable competitor against existing payment solutions like PayPal’s PYUSD, which offers fee-free cross-border payments to certain U.S. users, and Circle’s USD Coin on Ethereum layer 2 solution Base via Coinbase Wallet, which also facilitates free transfers.

Interestingly, the timing of Tron’s announcement comes shortly after both Circle and cryptocurrency exchange Binance ceased support for USDC on Tron. This decision might serve as a catalyst for Tron to innovate independently in the stablecoin arena.

Furthermore, Tron is exploring the potential of creating a Bitcoin layer 2 solution that would support a “wrapped” version of Tether, potentially channelling billions of dollars into the Bitcoin ecosystem. In the interim, Tron continues to utilize existing cross-chain protocols to facilitate the movement of USDT and other tokens between Bitcoin and Tron.