The Binance exchange has announced an update to its fees policy regarding the Tron (TRX) blockchain. In reality, this increase is not arbitrary, and stems from an update to the Tron network, which could threaten its competitiveness compared to other blockchains.
Why is Binance increasing its fees on the Tron (TRX) blockchain?
After an update of the Tron (TRX) blockchain, the Binance cryptocurrency platform has revised its fee policy for this network upwards. This measure follows the Tron improvement proposal (TIP) number 491, which was implemented on February 2.
Indeed, the actors of the network have made the choice to set up a system of fees based on what has been called the Dynamic Energy Model. Simply put, this update aims to “penalize” the participants deemed to be using too many resources on the network.
Indeed, it has been found that some of the activity on the Tron blockchain is seeing transactions “of low value, even fraudulent“. These transactions could then accumulate to the detriment of transactions considered more legitimate. Thus, this new fee management on the network would aim to combat its low value transactions.
In this way, Binance’s choice is not arbitrarybut simply cascades the new policy to the Tron ecosystem.
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The platform that simplifies trading
Details of fee increases
Thus, this fee adjustment is a necessity due to TIP-491 update. But the biggest uptick is with the withdrawal of TRX, the fees for which have simply been multiplied by fifteen.
Below, a summary table shows the before/after situation for the different tokens concerned:
|Before modification (by withdrawal)
|After modification (by withdrawal)
|Equivalent in $
|USDT, USDC, TUSD
|2.6 USDT, USDC, TUSD
|BTTC, JST, NFT, SUN, WIN
|89,687 BTTC, 50 JST, 30,600 NFT, 10 SUN, 690 WIN
|The equivalent of 40 TRX
While this blockchain was popular for transferring stablecoins between exchanges due to its low cost, it suddenly becomes less competitive. Thus, on such transfers, it could benefit other networks such as the BNB Chain or Polygon which are better positioned.
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Source: Binance, Tron Core Devs
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