Staking for Tron

Tron is a growing blockchain with the technology for super-fast and low-cost transactions. You can earn around 7% yield per year and gain rewards from voting for Super representatives (SR) or candidates. To earn voting rights, your Tron has to be frozen. When buying Tron, it is automatically frozen for the first three days. During the freezing period, you can earn Bandwidth Points (BP) and Energy Points (EP), both of which you can use to pay transaction fees. There are currently over 70 billion Tron in circulation. Tron is one to watch but probably a long-term project rather than fast gains. If you believe in technological advancement and trust that Tron is the platform to achieve that, then your belief has shifted into viewing Tron as a potential source of passive income from staking Tron. If the price of Tron rises over the years, there could be much to gain and little to lose if buying Tron at today’s prices. At the moment, Tron’s price is $0.06791, so even if you bought 1,000 Tron, you’d spend less than $100. Imagine if you had bought 1,000 Bitcoin in 2009 when the price was less than a dollar. Tron is one to watch but probably a long-term project rather than fast gains.

What is Delegated Proof of Stake (DPoS)?

The simple explanation of DPoS is that you delegate your Tron to gain rewards, but you endorse a validator to create new blocks for the blockchain. The Tron network only has 27 validators, referred to as Super Representatives (SR). They are elected by everyone participating in the Tron network using their TRX to vote. The person with the highest amount of votes becomes a Super Representative and can then create blocks for the Tron network. When the blocks are complete, the SR’s can choose to reward the people that voted for them. Anyone open to voting but not elected is referred to as a candidate. It’s a bit random because rewards can vary, and the Super Representative can elect not to offer rewards. It pays to do some research on SR’s beforehand to see who’s generous with TRX rewards and who isn’t. Tron has some unique features, one of which is freezing.

What is Freezing?

When you first buy Tron, you cannot touch it for three days. When you freeze your TRX, there are several potential gains. You can choose to freeze your Tron for Bandwidth Points (BP) or Energy Points (EP). For each TRX, you get 1 Tron Power, regardless of your choice. Tron power buys you voting rights.

Bandwidth Points (BP)

You can use Bandwidth Points to pay transaction fees instead of using TRX. You get 5,000 BP for every day your TRX remains frozen. Freezing your TRX for BP means you can have more free transactions. How much BP you receive depends on how much TRX you have frozen.

Energy Points (EP)

You can use Energy Points (EP) to pay for smart contract interactions. Freezing your TRX for EPs helps avoid additional fees for interacting with a smart contract such as TRC-20 tokens. How much EP you receive depends on the amount of TRX you have frozen.

Voting Rights

For each TRX frozen, you receive 1 Tron power to vote on a candidate or super representative. 1 Tron power is equal to 1 vote. For instance, if you have 10 Tron, you would have ten votes. You can vote for up to five SRs or candidates, choosing how you allocate your votes. These people can then reward you with more TRX, but, as we’ve said before, choose your votes carefully as not all SR’s or candidates offer rewards. When the three days have passed, you can unfreeze your TRX if you wish. But, if you do, your votes are reset, which means you aren’t eligible for future rewards. Any additional resources you earned during the three days are also reset. Keeping your TRX frozen means rewards may be ongoing, and you can continue to vote.

How to pay no transaction fee

You can send TRX to any Tron account, as long as your TRX isn’t frozen. For free transactions, use your Bandwidth points. One transaction uses about 250 – 300 Bandwidth Points. It’s a small amount, considering you receive 5000 BP per day from frozen TRX. If you run out of BPs, simply freeze some TRX and gather more BPs. If you have no Bandwidth Points, your transactions of Tron won’t break the bank. You pay approximately 0.002 TRX per transaction, which is a tiny amount. In the early days of Bitcoin transactions, fees were very high, adding significant costs to the transaction.

What are Tron Tokens?

Tron has tokens that run on its blockchain, known as TRC-10 and TRC-20 tokens. TRC-10 tokens don’t use a smart contract for interactions, but TRC-20 tokens do, so you must pay additional fees for transactions with TRC-20 tokens. However, you can use Energy Points (EP) to pay these fees. If you don’t have enough EPs, freeze your TRX to earn some more.

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