Tron's Gas-Free USDT Transactions: A Game Changer
1min read Tron, the blockchain network founded by Justin Sun, is set to launch a new feature that will enable gas-free transactions for USDT stablecoin users. This move comes in response to the rising fees for TRC-20 transfers on the Tron network, which have become increasingly expensive in recent months.
According to Sun, the new "Gas Free" feature will allow users to pay gas fees directly with USDT, eliminating the need for Tron's native TRX tokens. This change aims to cut costs for users and make Tron a more affordable option for stablecoin transfers. The feature is expected to roll out within the next week.
Gas fees are transaction costs that users pay to process operations on a blockchain. They cover the computing power needed to validate and execute transactions, helping to prevent spam and ensure network stability. On the Tron network, gas fees are slightly different, requiring users to have "energy" and "bandwidth" to complete transactions. If users don't have enough of these resources, they must pay additional TRX to cover the costs.
Tron once featured some of the lowest fees for USDT transfers, making it a popular choice for users looking for a cheap and fast alternative to Ethereum's more expensive ERC-20 transfers. However, fees have surged to between $3.20 and $6.50 per transaction, with some users reporting fees as high as $9. With gas-free transactions on the horizon, Tron hopes to regain its reputation as the most affordable network for stablecoin transfers.
The gas-free transaction feature has been in development since July 2024, with the Tron Foundation initially planning to launch the feature by the fourth quarter of 2024. Third-party platforms have previously offered this feature, with TokenPocket Wallet unveiling a solution that allowed Tron users to use USDT to cover the gas fees instead of TRX a month after the feature was initially announced last year.
The recent developments come alongside regulatory hurdles for stablecoin issuers in the European Union. With the EU's MiCA regulation in play, USDT has been delisted across several exchanges after Tether was notably excluded from the list of approved stablecoin providers. In response, Tether has shifted its focus beyond the EU.
