Term

Fee Rate

A fee expressed per unit of transaction size (e.g., satoshis per vbyte) used to prioritize inclusion in blocks.

Type:
blockchain
economics
Also known as:
sat/vB
1
concept

Miners select transactions by highest fee rate to maximize revenue. Wallets estimate the minimum sat/vB necessary for a target confirmation window.

Example 1.1

When demand spikes, required fee rates rise; on BCH or during quiet periods, the minimum relay fee often suffices.

2
calculation

Fee = fee rate × virtual size. Users can lower fees by reducing input count or using efficient scripts; batch payments improve amortized fee rate.

Example 2.1

A 200 vbyte transaction at 2 sat/vB costs 400 sats; consolidating inputs during low-fee times reduces future costs.

All terms and definitions may update as the Cryptionary improves.