TRC-20 token gives TRON-based tokens and are used in smart contracts. For example, a TRON-based project might automatically issue more of its TRC-20 tokens to early purchasers by programming such an early purchase bonus into the token’s smart contract.

However, with this added functionality and possibility for customization comes more complexity. TRC-20 token standard is fully compatible with Ethereum’s ERC-20 token standard. This means that TRC-20 tokens can be used in Ethereum-based smart contracts, allowing developers to transfer their Ethereum-based smart contracts to TRON if they choose.