What is TRC-20 at all? It’s a token standard implemented when a smart contract is created when using the TRON network. In the case of the question in the title, it refers to an actual token and the cost of sharing it, sending it to digital wallets.
What’s the TRON network? It is a decentralized, open-source blockchain-based operating system. Tron uses the proof of stake method as its consensus mechanism, with a native token Tronix (TRX).
Other than being a very ambitious and innovative project, Tron is popular as it is a network used by Tether, to issue USDT crypto coin. In the world of crypto trading, amid the volatile prices of Bitcoin, Ethereum, and other currencies like Bitcoin, there is a dire need for stablecoins. Stablecoins are the digital currency with the value of each token permanently fixed (e.g. pegged) to USD. So, one Tether (USDT) is almost always equal to $1. Why almost? Because minuscule fluctuations, no greater than one penny, do happen on the market.
Stablecoins, like Tether, not only serve users in need of stability and predictability but also USDT is accepted as a digital representation of USD. As such it is a staple of many trading pair options when trading crypto. If you are diving into the world of trading and investing, we highly recommend reading the article about Anon System trading bots. Like most trading bots they have algorithms that track cryptocurrency prices. Based on data from the past, the algorithm can predict future trends and rob you of trades made with emotion. Tether is also popular with cautious investors willing to dip their toes in the world of crypto investments.
Because of the high demand for stablecoins, USDT is sought after for staking, lending, crypto savings accounts, yield farming, and other activities. Decentralized finances (DeFi) apps and protocols, especially those dealing with liquidity pools and automated marked makers simply love stablecoins like Tether.
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TRC-20 fees, is this a trick question?
Okay, so the way Tron is built, with innovative TRC-20 token standard, holding, transferring, utilizing Tether or Tronix should always be instant and free. So why the question in the title?
Because blockchain networks operate slightly differently than ‘vanilla’ internet. Namely, the internet as a network consists of a huge number of computers, servers, and infrastructure. You pay for access to the network to your ISP (internet service provider) who maintains the bit of infrastructure needed to maintain the connection. Being so vast, the number of interactions on the ‘vanilla’ internet are casually available. Limits of the network are expressed as speed (maximum rate of data transmission) and bandwidth (maximum amount of data your connection can handle).
Blockchains are also networks. Think of them as small internets. Smaller infrastructure means that bandwidth and power are more precious. Every network has its own maximum speed and bandwidth. Ethereum, charges ‘gas’ fees to compensate for congested networks and power needed to compute each transaction. Their token standard is ERC-20, and each transfer can cost from $30 upwards.
Tron as the network calls ‘gas’ – Energy. Each transaction costs bandwidth and energy. The main advantage of Tron’s network is the power of 2000 transactions per second. Transaction fees are indeed free.
Namely, the transfers do have their price, but it can be easily mitigated by locking, or ‘freezing’ your TRX token. Simply put, if you go to your TRON Wallet, then freeze the amount of TRX, you will get staking rewards, your coins will be unavailable for 3 days, but you will gain allowance on your bandwidth/energy. If you don’t freeze enough, they will be deleted e.g ‘burned’ from your wallet.
If you want to move Tether from or to the TRON network, there are some interoperability fees, but they are tiny compared to Ethereum or other networks. The exact number differs from platform to platform. Eg. On Binance the transfer fee is 1 Tether, while Atomic Wallet will charge only 0.1 TRX, which is absolutely nothing in comparison to other networks.