Binance has approved a new community-accepted proposal that will raise gas fees for 6 Tron-based altcoin projects. The increase in withdrawal fees has been met with backlash from the crypto Twitter community.
Binance increases withdrawals for these altcoins
Binance has announced that it is changing the withdrawal fees on the TRON (TRX) network, in line with Proposal 83, the latest proposal accepted by the TRON (TRX) community to switch the gas fee system to the dynamic fee model. The gas fee of the contract will now be adjusted dynamically based on execution resource usage.
Almost 85% of the CPU execution time of the current Tron network is concentrated on a few contracts. Some of these are low value or even fraudulent contracts, according to reports. The new dynamic energy model increases the transaction cost of low-value and fraudulent transactions without affecting other dApps. Over 40 altcoins will be included in this model, 6 of which are frequently used.
#Binance will adjust the TRON Network Withdrawal Fees.
This adjustment is in line with the latest proposal passed by the TRX community to change the energy charging mechanism to a dynamic energy model.
More info here ⤵️https://t.co/O7rffAWttr
— Binance (@binance) February 10, 2023
Cryptocurrencies that will be charged more in the dynamic fee model
According to the official announcement on February 10, withdrawal fees for USDT /USDC /TUSD have been increased from 1 to 2.6 units. As for the Binance stablecoin, the fees have been increased from 0.8 BUSD to 2.2 BUSD. For TRX withdrawals, users now have to pay 15 TRX instead of 1 TRX. Meanwhile, withdrawal fees for other cryptocurrencies on the Tron network such as BTTC, JST, NFT, SUN and WIN have reached 40 TRX.
The dynamic energy model is a community-recommended strategy to dynamically adjust the contract’s future gas usage based on the contract’s known gas usage or TIP-491. Thanks to this approach, excessive grid resource concentration in a small number of contracts will be avoided and the allocation of energy resources on the Blockchain will be more reasonable.
Could the Binance implementation affect the trading volume of Tron-based cryptos?
The increase in withdrawal fees on the Tron network could have a significant impact on the trading volume of crypto tokens on Tron. It is expected to have an impact on token prices as well. The crypto Twitter community is disappointed that Tron is moving in the opposite direction of its goal of eliminating fees and creating convenience.
Tron (TRX) drops
TRX price was down 3% over the last 24 hours, following the general market trend at the time of the announcement. Meanwhile, Bitcoin and Ethereum are losing around 5%. February 10’s sales are approaching double digits especially on Dogecoin, Polkadot and Solana. TRX price is trading at $0.06333 mid-sell.
cryptocoin.comAs we reported, Binance wallet maintenance was carried out for the Tron (TRX) network last week.
