Many guests only know that they are using the TRON network, but they have no understanding of some products on the TRON network. Today, I will give you a small class, mainly discussing what TRON energy and bandwidth are. How much TRON energy and bandwidth will be consumed during a transfer? Why can renting TRON energy reduce USDT transaction fees?
1. What are TRON energy and bandwidth?#
Quoting the official explanation from TRON:
TRON Bandwidth: Regular transactions only consume bandwidth (mainly transfers, staking, and unlocking). The bandwidth consumed by a transaction = transaction byte size * bandwidth fee rate (current bandwidth fee rate = 1), and each account can receive 600 bandwidth for free daily.
Energy: Energy represents the processor resources consumed during the operation of smart contracts. Like bandwidth, it can be obtained by staking TRX, but no free energy is allocated to each account daily.
Are you feeling confused? Let me explain it this way, and you should be able to understand. TRON energy and bandwidth are unique products of the TRON network. If you transfer TRX, it only consumes bandwidth and does not require energy. If you transfer USDT, it consumes both energy and bandwidth. Each address has 600 free TRON bandwidth daily. TRON energy and bandwidth can be obtained by staking TRX.
It is important to note that any newly generated TRON address does not have bandwidth and energy; only activated addresses will have energy and bandwidth. The activation method is simple; you just need to transfer 0.1 TRX from another address to the new address, but there is a 1 TRX fee for activating the address.
2. Current consumption status of TRON energy and bandwidth#
After understanding what TRON energy and bandwidth are, you may want to know how much TRON energy and bandwidth are consumed during a transfer. The data is current as of the time I published this article, and if there are any changes in TRON energy and bandwidth consumption later, I will continue to write articles about it.
First, transferring TRX only consumes bandwidth, with each TRX consuming 269 bandwidth. If the account's bandwidth is insufficient, 0.269 TRX will be deducted as a fee.
Transferring USDT will consume both energy and bandwidth. Transferring one USDT consumes 345 bandwidth. As for energy consumption, there are two situations: if the recipient's address has USDT, the energy consumption is 31895. If the recipient's address does not have USDT, the energy consumption is 64285.
Exchanges and centralized wallets are somewhat special; although the account shows USDT, the recipient address often does not have USDT because exchanges or decentralized wallets periodically aggregate USDT funds from the recipient address to their own address. This is why sometimes when we transfer to an exchange, the energy consumed is 31895, and sometimes it is 64285.
Note: The TRON network officially passed Proposal No. 95 on September 19, 2024, at 20:00 Singapore time, which aims to reduce dApp transaction fees through adjustments to multiple parameters (for hot contracts like USDT, transaction fees have increased).
Proposal content:
Modify the threshold parameter of the dynamic energy model to 5 billion
Modify the cost of 1 ENERGY to 0.00021 TRX (210 sun)
Modify the maximum coefficient parameter (in ten-thousandths) of the dynamic energy model to 34000
This proposal has met the conditions for approval, and once effective, the transaction fees for most smart contracts will be reduced by 50%, but the energy consumption for certain hot contracts (such as USDT) may double, while the TRX fees paid will remain unchanged.
Voting status: https://tronscan.io/#/proposal/95
Since USDT is a hot contract on the TRON chain, the energy consumed for transfers after September 19, 2024, has doubled. If the recipient's address has USDT, the energy consumption is 64285. If the recipient's address does not have USDT, the energy consumption is 130285.
3. Why can renting TRON energy reduce USDT transaction fees?#
When we transfer USDT on the TRON network, we first consume the TRON energy and bandwidth in the account. When the energy and bandwidth in the account are insufficient to cover the transfer consumption, the TRX in the account will be burned. Currently, when you transfer USDT, is the fee being charged 13.3959 TRX or 27.2559 TRX? This is because your account does not have TRON energy available for consumption and can only burn the TRX in the account.
So how can you obtain TRON energy? The TRON official has explained that you can obtain TRON energy by staking TRX. Currently, staking 6500 TRX can yield 64546 energy (1 TRX staked can yield about 9.9 energy; this value is determined by the total amount of TRX staked across the TRON network, with a total energy amount of 150 billion, distributed based on the amount of TRX staked across the network, so the more TRX staked across the TRON network, the less energy each TRX staked will yield).
If you do not have that much idle TRX in your account and do not want to stake TRX, how can you obtain TRON energy? Then you can rent energy!
Let me first explain a bit about energy leasing. Energy leasing means that you can rent TRON energy from TRON TRX stakers at a very low price. The energy rented to you will have a validity period, commonly 1 hour, 1 day, 2 days, 3 days, 1 month, etc., so this method is called energy leasing rather than energy purchasing.
Just like the Feee energy leasing platform, the price for 1 hour of energy leasing is 7 TRX = 64400 energy. This means that if the recipient has USDT, transferring 7 TRX (the price is subject to change, based on the platform's price) to the Feee energy leasing platform will immediately distribute 64400 energy to your address. With 64400 energy, you can transfer USDT without burning additional TRX. Similarly, if the recipient does not have USDT, transferring 13.04 TRX (the price is subject to change, based on the platform's price) to the Feee energy leasing platform will immediately distribute 130,400 energy, allowing you to transfer USDT without burning TRX in your account.
If you need to transfer USDT daily, you might also consider renting energy for 30 days (the energy used daily will be restored afterward), which will be cheaper.