Understanding Network Fees on the Blockchain

What are Network Fees?

Network fees, often referred to as transaction fees, are essential payments made to incentivize the processing of transactions on the blockchain. When a transaction is initiated, it is sent to the blockchain network for validation. Miners or validators, who maintain the network's integrity, prioritize transactions based on the fees attached to them. Higher fees typically result in faster transaction processing.

Our Approach to Network Fees

To ensure transparency and fairness, our network fees are determined using an average of the previous 7 days of network fees, starting on a Monday. This method provides a balanced and accurate reflection of the current cost of processing transactions on the blockchain, smoothing out short-term volatility and fluctuations.

How We Calculate Network Fees

  1. Data Collection: We continuously monitor and collect data on network fees from the blockchain over a 7 day period.
  2. Averaging: At the end of each 7 day period, we calculate the average network fee for those 7 days.

By using a 7 day average, we can offer a consistent and predictable fee structure that reflects the broader trend in network fees rather than reacting to temporary spikes* or drops.

(*if we see temporary spikes, BVNK reserves the right the update the network fees at any time)

When Are Network Fees Charged?

Network fees are incurred exclusively for payouts. This means that any transaction involving the transfer of funds from our system to an external blockchain address will incur a network fee based on the 7 day average. This approach ensures that merchants/users only pay for the actual cost of processing their transaction, without any additional markup.

What are our current network fees?

To ensure we never over charge, the network fee charged will always be slightly lower than the average.



Network Avg Network fee (€) Network Fee charged (€)
Tron (TRX) (TRC20) €2.36 €2.1
Ethereum (ETH) (ERC20) €1.75 €1.6
Binance Smart Chain (BNB) (BEP20) €0.03 €0
Bitcoin (BTC) €4.62 €4.1
Dogecoin (DOGE) €0.01 €0
Litecoin (LTC) €0.01 €0
Matic (POLYGON) €0.01 €0

 

Why Do Network Fees Differ Across Blockchains?

Network fees can vary significantly across different blockchains due to several factors:

  1. Network Demand: Higher demand for transaction processing on a blockchain can drive up fees, as more users compete for limited block space.
  2. Consensus Mechanism: Different blockchains use different consensus mechanisms (e.g., Proof of Work, Proof of Stake), which can impact the cost and speed of transaction validation.
  3. Network Efficiency: Some blockchains are designed to be more efficient, with optimizations that reduce the cost of transactions.
  4. Transaction Complexity: The complexity and size of transactions can also affect fees. For example, smart contract interactions typically cost more than simple token transfers.

USDT (TRON) Payments

When transferring USDT on the TRON blockchain, the cost can vary based on the destination wallet's status.

  • Empty Wallets: Transferring USDT to an empty wallet costs 27.25 TRX.
  • Non-Empty Wallets: Sending USDT to a non-empty wallet is significantly cheaper, costing only 13.4 TRX

Understanding these variations can help users make informed decisions about their transactions and manage their costs more effectively. For any further questions or detailed breakdowns of how specific fees are calculated, feel free to contact our support team.

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