Transaction fees are amounts paid by users to have their transactions included in a blockchain block. They compensate miners or validators and help prioritise transactions when capacity is limited.
Semantic Classification
Content
- Transaction fees are set by users and represent the difference between a transaction’s inputs and outputs, which the block producer collects. When demand for block space is high, users raise fees to have their transactions confirmed sooner.
- Fees provide an incentive for miners and validators in addition to block rewards, and they are expected to become a larger share of mining revenue as block subsidies decline over time. Fee estimation tools help users choose appropriate amounts.