Tether-issued USDT stablecoin will feature gas-free transactions in the coming weeks in a bid to cut costs for users as TRC-20 transfer fees continue to spike.
According to Tron network founder Justin Sun, the new feature will allow users to pay gas fees directly with USDT, eliminating the need for Tron’s native TRX tokens.
In an announcement shared on X, Sun revealed that the “Gas Free” feature will roll out within the next week, offering commission-free transactions for USDT on the Tron blockchain.
Tron’s Gas Free feature supporting USDT gas payments without the need for TRX will launch within the next week. Teams and wallets wishing to support this feature, please contact support@justlend.org. Keep Building!
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What are gas fees?
Gas fees are transaction costs 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.
The fees tend to vary depending on the network load and the complexity of the transaction.
On the Tron network, gas fees are slightly different.
Instead of just paying a flat fee, users need “energy” and “bandwidth” to complete transactions.
Energy powers smart contract execution, while bandwidth covers basic transactions like sending tokens.
If users don’t have enough of these resources—common for those who transact infrequently—they must pay additional TRX to cover the costs.
The Tron network once featured some of the lowest fees for USDT transfers, often costing just a few cents per transaction.
This made it a popular choice for users looking for a cheap and fast alternative to Ethereum’s more expensive ERC-20 transfers.
Currently, TRC-20 USDT transactions on Tron have become unexpectedly expensive.
Fees have surged to between $3.20 and $6.50 per transaction, according to data from Tether’s GasFeesNow page, while some users have even reported paying up to $9.
USDT gas fees on various chains.
However, with gas-free transactions on the horizon, Tron hopes to regain its reputation as the most affordable network for stablecoin transfers by allowing users to cover gas fees with USDT instead of TRX.
Sun has also encouraged teams and wallet providers interested in supporting this feature to reach out to JustLend DAO, Tron’s official lending platform.
An exact launch date for the feature is yet to be announced.
In development since 2024
The gas-free transaction feature has been in development for some time, with the Tron Foundation reportedly working on the concept since July 2024.
Initially, Sun had planned to launch the feature by the fourth quarter of 2024 but faced delays.
Third-party platforms have previously offered this feature as well.
A month after the feature was initially announced last year, TokenPocket Wallet, a crypto wallet provider, unveiled the solution that allowed Tron users to use USDT to cover the gas fees instead of TRX.
Tether faces regulatory pressure
The recent developments come alongside regulatory hurdles for the stablecoin issuers with 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, as covered by Invezz in a previous report.
In response, Tether has shifted its focus beyond the EU.
The post Tron to launch gas-free transactions for USDT amid rising fees appeared first on Invezz
