After facing criticism from the TRON community and industry participants, Binance – one of the world’s largest cryptocurrency exchanges – has reversed its decision to increase withdrawal fees for TRX by more than 300%. The exchange had earlier intended to adjust the fee structure due to rising costs associated with network congestion and gas fees. But following feedback from users, they have reverted back to their old fee structure.
Binance’s Raising Decision Met with Great Reaction
On February 10th, Binance announced a significant adjustment to Tron (TRX) Network withdrawal fees following the approval of Proposal 83 by the community in January. Withdrawal costs have more than doubled, ranging from 160% to 1400%. For example, withdrawing USDT, USDC, and TUSD now comes at the cost of 2.6 USD as opposed to 1 USD before, while withdrawing BUSD has risen from 0.8 USD to 2.2 USD per transaction.
Binance’s choice to raise Tron network withdrawal fees was met with disapproval from the crypto community, who voiced their concerns about TRON’s failure to abide by its goals of eliminating fees and making transactions easier. Thankfully, Binance responded quickly and reversed its decision in response to the community outcry. Additionally, they partnered with TRON to seek out a more suitable replacement solution.
Binance Quickly Reversed the Hike Due to the Community Backlash
On February 11, Binance revealed its plans to modify the withdrawal fees on the TRON (TRX) network. This was done in an attempt to alter the energy recovery technique for the blockchain’s smart contract feature. However, following a wave of public opposition, Binance swiftly reversed its initial decision that very same evening.
As the topmost cryptocurrency exchange, Binance partnered with the TRON project team to find ways of reducing withdrawal fees on the TRON network. As a result of this partnership, Binance reinstated previous withdrawal levels for both TRX and other cryptocurrencies that use the TRON network.
You may be interested in: Ambitious Statement from the SEC Chief
