Binance, one of the world’s largest cryptocurrency exchanges, recently announced a U-turn on its decision to increase the withdrawal fees for TRON (TRX) network. The move came after the exchange faced backlash from the TRON community and several other industry participants.
The exchange had earlier planned to increase the withdrawal fees for TRX by more than 300%, citing the rising costs of network congestion and gas fees. However, the exchange has now decided to revert to the old fee structure following feedback from its users.
This development has generated a lot of buzz in the crypto community, with many questioning Binance’s rationale for increasing the fees in the first place.
Binance Reverses Tron Network Withdrawal Fee Hike
On February 11, the cryptocurrency exchange Binance released an update regarding TRON (TRX) Network Withdrawal Fees. In response to community concerns about the recent changes made to the network’s withdrawal fees, Binance worked together with the TRX project team to find a solution to reduce the withdrawal costs on the TRON network.
Binance faces community backlash and reverses decision to increase Tron network withdrawal fees
On February 10, Binance announced that it would adjust the withdrawal fees for the Tron (TRX) Network in response to Proposal 83, which the community had approved the previous month. Proposal 83 establishes a method on the Tron network for implementing dynamic energy regulation in contracts to balance energy allocation among them. As a contract’s energy use changes dynamically based on the resources it uses for execution, this will help to balance energy consumption.
The new withdrawal fee is almost double the previous amount, with an increase ranging from 160% to 1400% for each withdrawal. For instance, the withdrawal fees for USDT, USDC, and TUSD increased from 1 USD to 2.6 USD, while the fee for withdrawing BUSD rose from 0.8 USD to 2.2 USD.
Additionally, the withdrawal fee for TRX has increased from 1 TRX to 15 TRX, and for other cryptocurrencies on the Tron network such as BTTC, JST, NFT, SUN, and WIN, the withdrawal fee has increased to 40 TRX.
After Binance’s decision to increase Tron network withdrawal fees, Crypto Twitter voiced their dissatisfaction with Tron’s apparent disregard for its primary aims of removing fees and promoting ease. Consequently, in response to community feedback, Binance reversed its decision and worked with TRON to explore an alternative solution.
Justin Sun pledges to lower TRX withdrawal fees on Binance
On February 11, Justin Sun, the founder of Tron, took to Twitter to express his concern about the sudden hike in withdrawal fees on Binance. Sun reassured investors that he is actively working to lower the withdrawal costs for Tron stablecoins and tokens on the exchange, while also collaborating closely with Binance to address the issue.
We are working closely with #Binance and actively exploring solutions that would reduce withdrawal fees of #TRON stablecoins and tokens on the exchange.
We remain committed to making crypto trading more affordable for everyone.
— H.E. Justin Sun₮ (@justinsuntron) February 11, 2023
He further confirmed his commitment to making cryptocurrency trading accessible to everyone.
Binance Does a U-Turn on Fee Hike
On February 11, Binance made an official announcement about its plan to adjust the withdrawal fees on the TRON (TRX) network. The adjustment aimed to change the energy recovery technique for the blockchain’s smart contract. However, after facing community backlash, Binance decided to do a U-turn on its fee hike decision that same evening.
Following feedback from the community on the adjustments made to withdrawal fees on TRON (TRX) network, #Binance has worked with the project team to revert withdrawal fees on the network to previous levels.
More info ⤵️ https://t.co/oRw7WwZ1Hv
— Binance (@binance) February 11, 2023
As the leading cryptocurrency exchange by trade volume, Binance collaborated with the TRON project team to explore ways to lower the withdrawal costs on the TRON network. Consequently, Binance reinstated the previous withdrawal levels for TRX and other cryptocurrencies on the TRON network.
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