Binance Increases Withdrawal Fees for Crypto Assets On Tron Network, Crypto Twitter Responds
Binance, a crypto exchange, announced Friday that it will raise withdrawal fees for all major cryptocurrency on the Tron network (TRX).
This move follows the Tron community passing Proposal 83 to modify the energy charging mechanism in smart contract to a dynamic model.
Binance Reduces Tron Network Withdrawal Charges
Binance announced on February 10th that it will adjust withdrawal fees for Tron (TRX Network) Network based upon Proposal83, which was passed by the community last month.
Proposal 83 proposes a mechanism for dynamic regulation of energy in contracts to regulate the energy distribution among contracts. According to the execution resource usage, the energy consumption of a contract can be dynamically adjusted.
Nearly 85% of the current Tron network CPU execution time is devoted to a handful of contracts, some low-value and even fraudulent. The dynamic energy model increases transaction costs for low-value or fraudulent transactions without affecting other apps.
The withdrawal fee for stablecoins like USDT, USDC and TUSD has more than doubled to 2. The withdrawal fee for BUSD stablecoin is now 2.2, compared to 0.8 BUSD prior adjustment.
The TRX withdrawal fee has increased from 1 TRX to 15 TRX. Currently, withdrawal fees for other crypto assets on Tron such as BTTC and JST, NFT and SUN are equivalent to 40 TRX.
Will it have an impact on the trading volume of Tron Tokens
Tron’s withdrawal fees can have a significant impact on Tron’s trading volume. It could also have an impact on prices. Tron’s move in the opposite direction of its goal to eliminate fees and make it easier is disappointing for Crypto Twitter.
The TRX price is currently at $0.06308, a drop of over 3% in 24 hours.
Also read: Binance Upgrades Proof of Reserves System, Adds Shiba Inu and Solana
About the author
The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.