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Fee

blockchain
economics

A transaction fee is the amount paid for block inclusion, compensating block producers and discouraging spam.

Also known as
Transaction Fee
1
concept

Fees compensate block producers for including transactions and help ration scarce block space. Levels depend on supply, demand, relay policies, and the transaction's size or computational cost.

2
mechanics

UTXO chains commonly price fees by virtual size, while account-based smart contract chains use gas with per-operation costs. Wallets estimate fees from mempool or network conditions to target confirmation times.

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2 linked

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All terms and definitions may update as the Cryptionary improves.