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What Are Tron Energy and Bandwidth? Why Does Renting Tron Energy Reduce USDT Transaction Fees?

2023-07-22 MeFree.net

Many users are familiar with the Tron network but lack an understanding of some of the products it offers. Today, we’ll provide a brief lesson to explain what Tron energy and bandwidth are, how much Tron energy and bandwidth are consumed in transactions, and why renting Tron energy can reduce USDT transaction fees.

I. What Is Tron Energy and Bandwidth?

Let’s begin with an official explanation from Tron:

Tron Bandwidth: Regular transactions only consume bandwidth (mainly transfers, staking, unlocking). The bandwidth consumption of a transaction = Transaction byte size * bandwidth fee rate (current bandwidth fee rate = 1), and each account can receive a daily free bandwidth quota of 600. Energy: Energy represents the processor resources consumed during the execution of smart contracts. Similar to bandwidth, it can be obtained by staking TRX. However, there is no daily allocation of free energy to each account.

Feeling confused? You’ll probably understand it better with my explanation. Tron energy and bandwidth are unique products of the Tron network. When you transfer TRX, you only consume bandwidth, and no energy is required. However, when you transfer USDT, you need both energy and bandwidth. Every address is granted 600 free Tron bandwidth units daily. Tron energy and bandwidth can be acquired through staking TRX.

It’s essential to note that any newly created Tron address doesn’t have bandwidth and energy; they must be activated. Activation is straightforward; you need to transfer 0.1 TRX from another address to the new address, but there’s a 1 TRX activation fee.

II. Current Consumption of Tron Energy and Bandwidth

After understanding what Tron energy and bandwidth are, you might wonder how much Tron energy and bandwidth transactions consume currently. As of the time of writing this article, if there are any changes in Tron energy and bandwidth consumption, I will continue to update this article.

First, transferring TRX consumes only bandwidth. Each TRX transaction consumes 269 bandwidth units. If your account doesn’t have enough bandwidth, a fee of 0.269 TRX will be deducted.

Transferring USDT consumes both energy and bandwidth. A single USDT transfer consumes 345 bandwidth units. As for energy consumption, it depends on whether the receiving address has USDT. If the receiving address has USDT, the energy consumption is 31,895. If the receiving address doesn’t have USDT, the energy consumption is 64,895.

Exchanges and centralized wallets are unique in that they often display USDT in accounts, but the receiving addresses typically don’t have USDT. This is because exchanges or decentralized wallets periodically sweep USDT funds from receiving addresses to their own addresses. That’s why sometimes we see energy consumption of 31,895 and other times 64,895 when transferring to exchanges.

III. Why Does Renting Tron Energy Reduce USDT Transaction Fees?

When you transfer USDT on the Tron network, your Tron energy and bandwidth are consumed first. If your account doesn’t have enough energy and bandwidth to cover the transaction cost, your TRX will be burned. Have you noticed that the transaction fee for USDT transfers is 13.3959 TRX or 27.2559 TRX? This is because your account lacks Tron energy to cover the cost, forcing it to burn TRX from your account balance.

So, how can you obtain Tron energy? Tron’s official solution is to stake TRX, which allows you to obtain Tron energy. Currently, staking 1,900 TRX provides 32,000 energy units.

But what if you don’t have enough spare TRX to stake or don’t want to stake TRX? That’s where energy leasing comes in!

Let me explain energy leasing briefly. Energy leasing allows you to rent Tron energy from Tron TRX stakers at a very low cost. The energy you rent comes with a specific validity period, such as 1 hour, 1 day, 2 days, 3 days, or 1 month. That’s why it’s called energy leasing, not energy buying.

Just like an energy leasing platform, the price for 1-hour energy leasing is 3 TRX for 32,000 energy units. If the receiving address has USDT, transferring 3 TRX to mefree.net’s receiving address will instantly distribute 32,000 energy units to your address. With 32,000 energy units, you can offset the energy required for transferring USDT, without the need to burn additional TRX. Similarly, if the receiving address doesn’t have USDT, transferring 6.1 TRX to mefree.net will instantly receive 65,000 energy units. This way, you can transfer USDT without burning TRX from your account.