What Are the Limits for Receiving Energy in the Tron Network?

The total volume of resources in the Tron ecosystem is limited. For example, as of August 2024, the limit of Energy resource was increased to 120 billion. This decision was made by validators - representatives of the blockchain platform community, to whom network participants have granted the right to make such decisions, among other things.

Energy limit was dictated by the launch of memecoins and the increased activity of the developers of these tokens, as well as those wishing to have this meme crypto. The set goals were achieved by this increase in the total energy limit in the Tron network.

The question naturally arises: are there any limits on receiving Energy in the Tron network by participants of this blockchain platform?

But first, let's remember why there is a resource called Energy in the Tron ecosystem at all. This resource can be compared to the gas fee in any cryptocurrency blockchain where the crypto is mined, for example, Ethereum.

Tron blockchain uses a different method for each participant to replenish their cryptocurrency reserves – the staking method. A limited total limit of TRX tokens (the network’s native crypto) is used to distribute it among the blockchain users. This consensus is based on the Proof of Stake mechanism, not Proof of Work as in mining.

That is, if you have a certain stock of the network's native crypto, you can already participate in staking and increase its volumes on your balance. To do this, you do not need to prove that you have significant computing power and sufficient electricity supplies. Just demonstrate the presence of tokens in TRX in your wallet by sending them (or part of them) to be frozen. This is a locking process that resembles the process of depositing in a regular bank. You lock TRX for a certain period of time, and the Tron ecosystem uses them during this period in the interests of the blockchain community.

In gratitude for providing your own savings in TRX for a while, the network can pay you with either crypto or resources. It depends entirely on your choice.

Usually, if the volume of savings is large enough, it makes sense to freeze part of it with the expectation of annual interest. But if the stock is not yet large, and the user is developing smart contracts or decentralized applications, then it makes sense to freeze these savings to receive Energy as gratitude.

After all, without a sufficient supply of Energy, you will not be able to develop or otherwise interact with smart contracts or DApps, which are usually made up of multiple smart contracts.

All transactions that are carried out in the process of providing smart contracts are paid for by commissions for quality traffic and computing power that the network provides to the user at that time. They require replenishment and compensation.

Bandwidth is used to compensate for the network's services in providing high-quality traffic. Some of this resource is replenished by the network itself - a certain amount of Bandwidth appears in each account daily. This resource is used to pay commissions for the simplest, most common transactions. By the way, recently, by decision of special representatives, the limits of these daily "gifts" were lowered as part of the fight against inflation within the network. But simple transactions are not usually made every day, and even the reduced limits are enough for a couple of transactions. And the next day, regardless of how much your reserve is spent, you, like every user, will again receive a Bandwidth replenishment in full.

The situation is completely different with Energy. This resource can only be obtained through staking. Having frozen part of the crypto, when you assign a type of reward for “renting” your TRX, you simply select Energy in the wallet, not TRX or Bandwidth.

Now is the time to talk about what limits exist in the Tron network for receiving Energy, and what factors influence their volumes.

Main Factors Affecting Energy Production Limits

By now you must understand the main principle of obtaining Energy in the Tron network - it is directly related to blocking (freezing) tokens of the native currency of the ecosystem - TRX. Staking TRX allows you to receive the resources you need in the volumes you need.

At the same time, the limits for receiving Energy directly depend on several factors, some of which you can manage in your own interests. First of all, this concerns the volume of TRX tokens allocated by you for freezing.

You can influence the proportional distribution of Energy among all users only through your representatives, which we talked about above - an increase in the general Energy limit in connection with the launch of memecoins.

But let's take a closer look at all these factors that affect the limits of receiving Energy. Surely there is an opportunity to influence them more actively and effectively.

Amount of Frozen TRX

In the case of freezing native currency tokens, the user practically determines the future volume of Energy received. Its amount is directly proportional to the number of TRX sent for freezing (staking). The volume of blocked TRX tokens is the main factor that affects the amount of Energy available to the user.

That is, the user practically independently sets limits on the Energy received at the moment. The more TRX is sent to staking, the greater the amount of Energy the user will receive. When freezing an insignificant amount of native Tronix crypto tokens, the user will also receive a smaller amount of the resource to compensate for the network's computing resources.

Proportional Distribution of Energy

We have already said above that the total volume of the Energy resource is limited. It is distributed proportionally among those users of the Tron ecosystem who are currently participating in staking, i.e. have frozen their TRX. This is the next factor that forms the Energy limit for each user who has frozen their crypto at the moment. After all, the amount of Energy that each user will receive for their frozen TRX directly depends on the total volume of native crypto tokens that have been frozen by all ecosystem participants during this period.

Here, there is an inversely proportional dependence. If, during the period when an individual user decided to freeze their TRX, the volume of all frozen tokens in the network is high due to a large number of staking participants, then this user (like everyone else) will receive less Energy per unit of frozen crypto.

But if a small number of users participate in staking in the network during a certain period, then each of them will receive more Energy per unit of TRX than in the first case.

Maximum Amount of Energy

In determining the possibilities of obtaining Energy through staking, one should proceed from the fact that, firstly, Energy is a resource in the Torn network that is not infinite, and secondly, there is no limit on the possible receipt of Energy by an individual user.

That is, theoretically, each user can receive the amount of Energy that staking of frozen TRX accumulations provides him with. But in this case, you should be prepared for the fact that in different periods you will receive different amounts of Energy for the same amount of frozen TRX.

This happens when there is an increase in demand for Energy, which leads to a large number of staking participants who want to receive Energy as a result of freezing. Above, we gave an example of how, just recently, due to the addition of new features (memecoin production), the Tron ecosystem decided to increase the total Energy limit in anticipation of increased demand for it. Since memecoins operate on the basis of smart contracts, the transactions of which are “paid” with Energy.

But precisely because Energy is a limited resource in the network, there is a high demand for it, expressed in a large number of TRX tokens sent for staking, each of the users who froze their crypto during this period will receive less Energy for each frozen TRX.

Freezing Time Limit

The amount of TRX that is frozen is practically the only factor that affects the amount of Energy you receive and.

The freezing period does not affect the amount of Energy received during staking. The minimum period is 3 days, and the maximum is unlimited. A longer freezing period does not affect the amount of Energy received per unit of TRX - you will receive the resource proportional to the amount of TRX that is staked for any period.

Another thing is that developers and active users of smart contracts require significant reserves of Energy to pay fees for numerous transactions. Such users will regularly freeze TRX so as not to spend crypto on transactions. We remind you that in the event of a shortage of Energy in the process of providing smart contracts, the network begins to burnTRX tokens from your balance without warning.

Systemic Resource Allocation

We have already mentioned above that in the Tron ecosystem the Energy resource is limited, the same applies to the Bandwidth resource, the total volume of which in the network is also fixed. These fixed volumes are distributed among all users of the blockchain platform.

A certain amount of Bandwidth is credited daily to each account balance for free. Both resources can be replenished by freezing the system's native crypto in tokens TRX. And this is the only way to get Energy for free.

During periods when demand for Energy is high, the total amount of frozen TRX is also high. With proportional distribution, in this case each user will receive less Energy per crypto unit than during periods of decreased demand for this resource.

This is because the fixed (limited) amount of Energy is divided proportionally for each "contribution", but per unit of TRX it will be the same amount for all staking participants.

How it Works in Practice

Let's say you've frozen 10,000 TRX with the condition of receiving Energy. The blockchain platform will determine the level of demand for this resource at the moment, based on the total number of TRX tokens frozen by all users. Based on this data, your Energy "quota" will be determined in accordance with the volume of tokens you've frozen.

This quota will be higher if demand is low, but if a large amount of crypto is frozen by the community at that moment, you will receive less of the resource for each unit of TRX that is frozen.

Dynamic Energy Distribution

Resource allocation in the Tron ecosystem is dynamic and depends on the amount of limited types of resources in free access. This can be due to a sharp increase in demand, as a result of which the network increases the fixed amount of a resource, as recently happened with Energy.

But the amount of Energy available to each network user can change depending on the growth or decrease in demand for this resource. Then the number of frozen TRX in the network changes. If this number grows, each user receives less Energy per unit of frozen crypto, and if the volume of frozen TRX falls, the “income” of each participant in Energy increases.

Bottom line: you can partially adjust the limits on how much Energy you receive on your balance. This amount will directly depend on how much TRX you freeze. But there are also factors that you cannot control, but which also affect the change in the amount of Energy you receive during staking.

These factors directly depend on the demand for Energy, mainly from those participants who deal with smart contracts, as well as applications and tokens based on them. These factors are the total Energy limit set by the ecosystem in the network, as well as the total number of frozen TRX tokens at the time of resource distribution.

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