Transactions with cryptocurrencies usually require paying fees. An exception is operations between users on centralized exchanges, where there is no fee for internal transfers.
Fortunately, this is not the only way to send cryptocurrency without fees. In this article, we will explore how to avoid paying fees for transactions on the Tron network.
How Fees Work on the Tron Network
Like any other blockchain, Tron utilizes a fee system for transactions, providing a way to send cryptocurrency for free.
Fees for transactions on the Tron network depend on the transaction type. Fees in the network are paid with Bandwidth Points (BP) and Energy, which are essentially resources needed for different transactions.
Types of transactions include:
- Transactions with TRX and other TRC-10 standard tokens.
- Transactions with TRC-20 standard tokens, such as USDT.
For transactions with TRC-10 tokens, Bandwidth Points need to be spent, while for TRC-20 tokens, both Bandwidth Points and Energy are required.
If a user lacks sufficient Bandwidth Points and Energy, TRX is spent. The amount of TRX burned for a transaction is calculated based on the shortfall of Bandwidth Points and Energy:
- 1 Bandwidth Point is valued at 0.001 TRX.
- 1 Energy is valued at 0.00042 TRX.
The fee is calculated based on the number of bytes in the transaction. For transactions with TRC-10 tokens, 1 BP is used per 1 byte. Transactions with TRC-20 tokens are considered more complex, as the fee depends on the smart contract involved.
Each TRON account receives 1500 BP per day for free. Energy is not allocated without a reason.
How to Avoid Paying Fees for Transactions on the Tron Network
To obtain Energy and additional BP, you can engage in TRX staking. Let’s explore how to do this.
How to Obtain Bandwidth Points
The network has a fixed total amount of BP that is collectively shared by all users. The total amount of BP per day is 43,200,000,000.
To receive BP beyond the daily free allocation of 1500, you need to stake TRX. While your cryptocurrency will be locked and inaccessible, you will earn either BP or Energy as a reward. You need to choose the reward option when freezing your balance.
The amount of BP allocated for staking is calculated using the following formula:
When the allocated free BP and staked BP are depleted, they will gradually replenish over a period of 24 hours.
How to Obtain Energy
The mechanism for earning Energy is almost identical to BP. The network has a fixed total amount of Energy that is collectively shared by all users. The total amount of Energy per day is 90,000,000,000.
When TRX is staked, the calculation for the amount of Energy to be earned is determined by the following formula:
For calculations, you can use a calculator that provides the calculation of allocated Bandwidth Points and Energy.
TRX must be frozen for a minimum of 3 days. After 72 hours, you can either withdraw the cryptocurrency or leave it to continue earning Energy or additional BP.
By obtaining Bandwidth Points and Energy, you can avoid paying fees for transactions, including sending USDT (TRC-20).
The most important thing is to monitor the balance of Bandwidth Points and Energy. If they are insufficient, TRX will be burned to cover the fee.
How to Create a Tron Account
First and foremost, you need to create an account, as staking TRX is not possible without one. There are three ways to do this.
If you already have an account, you can proceed directly to the section on TRX staking.
Method #1: Using the wallet-cli command-line
Method #2: Using an SDK
Let’s consider TronWeb as an example:
Method #3: Creating a private key through the wallet application
We will explain this method in detail as it does not require working with code. The wallet can be downloaded on Android and iOS, as well as installed as an extension for Chrome and Firefox browsers.
Go to the website https://www.tronlink.org/#/ and click on the “Download Now” button.
Next, you need to select the version you want to install. We will be installing the extension for Chrome.
Click on “Chrome Web Store.” When the Chrome Web Store opens, click on “Install.”
After the installation is complete, the “Install” button will change to “Remove from Chrome.”
To access the wallet, you need to click on the button with extensions and select “TronLink” from the list.
- Select “Create Wallet.”
- Agree to the license agreement.
- Create a password and enter it.
- Save the seed phrase and confirm it.
Once you complete all the steps, you will see the wallet with your balance. After creating an account, you need to activate it in order to start using it.
To activate the account created in the application or through the extension, you need to send any amount of TRX or other TRC-10 tokens to the wallet.
There is a fee of 1 TRX for activating a new account.
How to Stake TRX
Staking TRX is done through the wallet.
After clicking the “Stake” button, a page opens with information about the TRX being staked, the amount of Energy and Bandwidth Points that will be rewarded.
To stake TRX, click on the “Obtain” button.
Next, you need to choose how much TRX to freeze and what you want to receive: Bandwidth or Energy.
Bandwidth or Energy is rewarded along with TRON Power (tokens used for voting in the system), so you will be choosing between:
- TRON Power and Bandwidth;
- TRON Power and Energy.
TRX is frozen for a minimum of 3 days. After 72 hours, you can either withdraw the cryptocurrency or leave it to continue earning Energy or additional Bandwidth Points.