The biggest cryptocurrency exchange declared on Saturday that it has returned the Tron network's withdrawal caps to their prior levels in response to user complaints. Binance has previously announced that it will be raising fees as a result of the Tron DAO's decision to change the network's energy billing scheme.
The Tron project team and Binance have worked together to develop a way to reduce withdrawal costs on the network while facilitating user transactions through the exchange, according to an official statement issued by the exchange.
Following a vote by the Tron community to switch the energy charging model on the Tron network to a dynamic energy model, the exchange declared on Friday that it would be raising prices. This concept aims to prevent an excessive concentration of network resources on a small number of contracts and more fairly charge for energy resources on the chain. The cost of withdrawing TRX increased by a factor of 15 once the new policy went into effect, while the cost of withdrawing USDT increased by more than thrice.
The creator of Tron Network, Justin Sun, said in a statement earlier on Saturday that the business is dedicated to creating a network that is "affordable, fast, and secure." However, Binance has changed the fees related to withdrawals on the TRON network as a result of the recent transition from a static to a dynamic energy pricing model. In order to reduce the costs, he also disclosed that he was working with Binance.
At #TRON, we are dedicated to building a network that is cheap, fast, and secure. Following the recent change in energy charging model to the dynamic energy model, @Binance adjusted the withdrawal fees on the #TRON network.
— H.E. Justin Sun🇬🇩🇩🇲🔥₮ (@justinsuntron) February 11, 2023
The Tron network established a method in compliance with Proposal 83 to enable dynamic control in order to achieve a more equal allocation of energy among contracts. The amount of energy required to accomplish a contract will vary depending on how many resources are utilised to carry it out.
Just a few contracts, some of which are of little value or have even been shown to be false, are now taking up the majority of CPU time on the Tron network. The dynamic energy model increases the cost of such transactions as a result, with no effect on other decentralized applications (dApps).
According to latest Binance news, the withdrawal costs for USDT, USDC, and TUSD remain unchanged at 1 U.S. dollar value, while the charge for BUSD is calculated at 0.8 BUSD. Additionally, the TRON token's cost has been reduced from 15 to 1 TRX.
