Tron’s $1B TRX Buyback & USDT Dominance — Could TRX Shape the Future of Payments?

Tron DAO has started a large $1 billion program to buy back its TRX tokens. The move comes as the amount of Tether (USDT) issued on the Tron blockchain passes $80 billion, strengthening the idea that Tron could become a leading player in cross-border payments.

At current market prices of about $0.35 per token, the plan could take up to 3.1 billion TRX out of circulation. This is a sharp jump compared to June, when only 365 million tokens were repurchased. Since the announcement on July 31, TRX has gained 26% in price. Data from TronScan shows more than 1.2 billion tokens have already been bought, with daily burns now cutting the supply by around 2.5% this quarter.

The buyback is designed to strengthen Tron’s reserves and reward long-term holders. By reducing the supply of TRX, the network hopes to support higher value over time. Tron’s importance in the stablecoin market is clear. More than 63% of all Tether now sits on Tron, with $611 billion worth of transactions processed in a single month across over 65 million transfers. This dominance is partly due to Tron’s low transaction fees. On August 30, a community vote cut fees by 60%, making it even cheaper to move funds.

In the first half of 2025, USDT supply on Tron grew by $23 billion, bringing in $916 million in revenue for the network. Daily USDT transfers now average $19 billion. Analysts note that Tron’s ability to handle high volumes at low cost makes it well suited for remittances and decentralized finance.

Data from analytics firms such as Nansen and Messari highlights Tron’s progress in the first half of 2025. USDT supply on the network reached $81 billion, up 150% from the previous year. Daily network revenue peaked at $1.14 million, a 200% increase. The number of wallets holding USDT climbed to 41 million, about eight times higher than in January. Meanwhile, token burns reduced TRX supply. Tron processed 7.2 billion transactions this year to date, far more than most rival blockchains.

Tron Inc. is using treasury funds, including a $220 million TRX reserve, to buy tokens on the open market. Around 60% of these tokens are earmarked for staking, which can offer returns of up to 10%. This method is similar to other crypto projects that use token burns, such as Binance with BNB. However, Tron also benefits from its strong position in the stablecoin market. Following the buyback announcement, TRX rose by 15%, outpacing Bitcoin and Ethereum. Some long-term holders also took profits, with about $1.4 billion in gains recorded by those who held TRX for three to five years.

While the buyback may reduce supply, some critics worry about centralization. Founder Justin Sun still plays a key role in the network and controls several top “super representatives” that secure the chain. However, Tron’s delegated proof-of-stake model allows token holders to see voting and transaction activity transparently on-chain. The recent cut in fees from about $4.28 to $1.64 per TRC-20 transfer has also helped address user concerns, making the network more competitive compared to blockchains where fees remain high.

Tron Moving Toward Payments

Tron has evolved from its early focus on entertainment applications into a network that aims to serve as global payment infrastructure. A new product, USD1, is a yield-bearing stablecoin backed by U.S. Treasury bills. It launched with $50 million and is targeting $200 million by the end of 2025. This combination of blockchain efficiency with traditional finance is designed to appeal to institutional investors. Tron has also begun expanding into gaming payments. Its partnership with YGG’s publishing arm enables USDT micropayments in web3 games, an important step for adoption in regions like Asia and Latin America, where most USDT activity originates.

Regulatory conditions also shape Tron’s future. A U.S. Securities and Exchange Commission probe into Tether’s reserves has been paused, easing concerns and indirectly benefiting Tron. Still, with 48% of network activity tied to USDT, reliance on a single stablecoin could be a vulnerability if new rules tighten. To address this, Tron offers other optionsT and staked TRX (sTRX), which provide 5–7% yields. Developers also have tools like GasFree, which lowers costs to around 1 USDT per transaction through subsidies from the JustLend protoc like JSol.

The global payments industry is worth trillions of dollars. Tron’s combination of a strong USDT base, reduced fees, and its large buyback program gives it a unique position compared to competitors. Its transactions are cheaper than Visa for small transfers and faster than the traditional SWIFT banking system.

Tron’s $1 billion buyback and its dominance in stablecoin activity show how the project is shifting toward a role in real-world payments. While risks remain, its scale and speed give it a strong advantage. If successful, Tron may demonstrate how blockchain can move beyond speculation and into practical use as a backbone for global money flows.