How Does Freezing TRX Help Save On Transactions?

As soon as a user of a cryptocurrency blockchain platform begins to get used to the network and understands how to conduct transactions, how to use smart contract tokens, he/she quickly begins to want to reduce transaction fees. The user especially does not want to use cryptocurrency funds to pay for transactions. But there are also additional resources that should also be used to pay for the provided capacity and traffic processing speed - this is Energy and Bandwidth.

If we tell you now that with the desire and knowledge of some completely legal operations in the Tron ecosystem, transactions can be carried out for free, you will probably doubt it. In the worst case, you will decide that this is some kind of advertisement for third-party services. But this is the beauty of the cryptocurrency blockchain, which is based on the principles of decentralization, and where a new method of "mining" crypto is used - staking, also known as freezing or blocking.

For example, the Tron ecosystem provides an opportunity for all participants to increase funds in the TRX crypto without special capacities and sophisticated video cards. At the same time, you do not necessarily have to resort to the help of third-party exchanges and marketplaces of crypto and resources. All operations can be carried out only on the Tron platform.

All you need to do is register and make a down payment to a wallet opened in the system or linked to it. This non-custodial TronLink wallet will be used to freeze your savings of the network's native currency, which you have in the form of TRX tokens.

In this article, we will tell you how freezing TRX helps you save on transactions.

Gaining Energy and Bandwidth

Besides cryptocurrency in TRX tokens, the Tron platform, similar to other staking Blockchains, uses additional Bandwidth and Energy resources to pay for transactions. Moreover, for simple transactions related to financial operations such as transfers or exchanges, only the Bandwidth resource is sufficient. As its name suggests, this resource provides sufficient network capacity to carry out these simple operations.

But the Bandwidth resource will not be enough for smart contracts that can include several transactions, and even more so for a package of smart contracts and decentralized applications, which may require up to two dozen transactions. To work with these tokens (TRC-20, TRC-721, etc.), the network requires additional computing power, which must be replenished using the Energy resource. This resource compensates for the additional computing resources of the network that are “spent” on your work with smart contracts.

If you are new to staking, you will be pleased to know that the Bandwidth in your wallet will be restored daily. The volume of this resource, which the Tron ecosystem supplies to each account for free, is more than enough to support all simple transactions, as well as when working with TRC-10 tokens.

These tokens are created and managed directly at the blockchain level, rather than through smart contracts. The advantage of using TRC-10 is lower transaction fees compared to TRC-20 tokens. But the fee in Tron for creating a TRC-10 token is 1024 TRX.

To perform simple transactions and requests on the Tron blockchain platform, additional network bandwidth is required. For this, you will have to pay a certain amount of Bandwidth depending on the type of transaction: exchange via a software interface, deposit on exchanges, etc. But for these simple transactions (as well as for creating TRC-10 tokens, by the way), no additional computing power is required, so transactions here are free of Energy fees.

TRC-20 tokens are created through smart contracts in the Tron virtual machine. If you have at least a basic understanding of programming and know or are able to master the Solidity language, and know the secrets of freezing TRX, you can create your TRC-20 tokens almost for free. Which opens up tempting prospects for you, at least as a developer of smart contracts for orders - a very popular service.

The popular example of TRC-20 standard token is the USDT stablecoin, launched on the TRON network in 2019. Large holders of the cryptocurrency began to use this stablecoin, tied to the US dollar, to make payments. According to analytical portals, more than 50% of the supply of this stablecoin is circulating in the Tron ecosystem. But the owner of the "original" Ethereum has lost its position in this segment of the crypto market. Decentralization of the platform, scaling and prompt processing of transactions on the Tron network determined the choice of large holders of cryptocurrencies.

Therefore, we are talking about the need for additional computing resources, which the Tron network user compensates for when paying for transactions with the Energy resource. Which, unlike Bandwidth, is not restored by the network. It should be purchased for the native Tronix currency - TRX tokens.

Don't be disappointed - we haven't introduced you to the TRX freezing process yet. You can get both types of these resources without spending anything from your savings. That is, you can increase the resource reserves in your account to such a level that transactions when creating smart contracts will cost you nothing.

Tron eco-platform pays out rewards in the form of resources to those network participants who provide their TRX savings for use by the blockchain platform. This is the freezing process. You block (send to freeze) a certain amount of TRX that are stored on your account in the network and do not have the right to use them for a certain period of time - during this time, the network uses them.

You choose the resource you need yourself when you send part of the funds to be frozen: you can choose both resources, or Bandwidth or Energy separately. The reward from the network depends on the frozen amount of TRX.

As for the freezing period of funds, the minimum is set by the ecosystem, and the maximum is set by the user. Putting a certain amount of money in freezing for a long period frees you from the worry that the network will start burning TRX if you run out of Energy during the process of creating a smart contract. And that's exactly what it will do: in the event of a lack of resources, transactions will be paid for with your crypto stored in the wallet.

This means that the more TRX you freeze, the more profitable your developments will be for you.

Reduced Costs for Active Users

Having a sufficient amount of Energy in reserve is very beneficial for developers of decentralized applications DApps and other smart contracts, as well as developers of non-fungible NFT tokens. You save TRX and spend on transactions resources that you get for free.

Large cryptocurrency holders are also interested in a constant flow of not only Bandwidth, but also Energy, since they make a significant number of transactions, are users of smart contracts, and often developers.

Simply freezing TRX is thus an economically advantageous process for all large crypto holders, as well as those who regularly make transactions of any level of complexity, since it completely frees them from significant expenses on commission payments if desired.

By the way, it is beneficial for large cryptocurrency holders to participate in network validation and governance through voting – a process called active staking.

Although any participant who regularly stakes can receive an invitation to participate in the vote TRX, freezing even small amounts of cryptocurrency.

In this case, you have the opportunity to get a bit of resources, and maybe even crypto, practically without doing anything. It depends on how much TRX you provide for the general needs of the validator, of course, with the return of this crypto in full, and even with a nice bonus.

In addition to freezing your crypto for a certain period, you will be able to participate in voting to select representatives, who in turn will select 27 super representatives. By the way, this action happens every 6 hours, and it is aimed at controlling blocks (in particular, checking transactions to eliminate fraudulent spam), adding new blocks and eliminating outdated information. This process is called validation, and the performers are validators, as is the entire group (or bush) that they represent. Anyone can grow to a super representative if they stake regularly, have skills in technology and are ready to take a training course.

For his work as a validator, the super representative receives a reward in TRX and resources, but there is also a reward for voting. In addition, the super representative can distribute part of the reward for block production among the group members. Considering that each new block is added to the ecosystem in 3 seconds, the reward can be decent.

This is another source of free Energy, and in addition, you can send TRX rewards to staking.

Reusing the Resources

The mining method of getting crypto requires a large amount of electricity to provide significant computing power. This energy is spent by miners without renewal and the possibility of using it again. In addition, non-renewable sources are often used for its production, such as coal and natural gas. That is, mining also contributes to environmental damage.

Staking (freezing, blocking) crypto is a much more environmentally friendly process. After all, the resources that are used to compensate for network throughput and computing resources can be reused or used multiple times, like Bandwidth, which is renewed in your wallet daily.

Although the Energy resource must be purchased or staked, it is also a renewable resource due to its dynamic distribution. This is noticeable if you study the staking principle and the Energy consumption, for example, for creating smart contracts.

Cost Control

We have already found out that a one-time freeze of a part of TRX tokens , similar to receiving passive income, can permanently eliminate commission expenses. The main thing is to correctly determine the volume of frozen tokens.

If you just make simple regular transactions with your funds, it will be easy for you to calculate how much crypto needs to be frozen.

It is much more difficult with developers and users of smart contracts. Sometimes it is difficult to calculate the number of transactions in a smart contract package. Therefore, it is necessary to more carefully control the resource costs so that due to their unexpected completion the network does not start burning crypto tokens.

The calculation of the freeze depends on many factors, in particular - on the conditions provided by the network. The photo below shows how many resources you will receive for 1 token of the native crypto of Tron.

And then there are simple arithmetic calculations that will tell you that by freezing 5-6 thousand TRX, you won’t have to worry about crypto being eaten when paying not only for simple transactions, but also when developing several complex smart contracts.

Tronix crypto in the form of freezing TRX tokens is profitable both in passive and active forms. In the first case, inactive users do not spend money on commission when carrying out simple financial transactions - the resources accumulated during the freezing period are quite enough for such actions. At the same time, they do not even have to block large volumes.

Passive staking in large volumes is beneficial to those who conduct a large number of financial transactions using smart contracts.

Active staking, in addition to additional rewards in TRX and resources, allows you to participate in network management, creating blocks and adding them to the blockchain storage chain.

In any case, staking (freezing) TRX is an effective way to get the required amount of Energy and Bandwidth resources for free.

This is a great way to save on fees or eliminate them entirely when working with decentralized applications based on smart contracts.