What are Network Fees?
Network fees, often referred to as transaction fees, are essential payments made to incentivise miners or validators in the processing of transactions on the blockchain network. 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, we assess market data regularly and rather than applying short-term volatility, spikes and temporary fluctuating network pricing, we aim to provide a balanced processing fee based on market averages.
(*Note: Temporary fluctuations refer to rapid, significant price increases in network fees (“Spikes”), or rapid, significant price decreases (“Drops”) in the network fees. If such temporary fluctuations occur, BVNK reserves the right to adjust the network fees at any time in response to such temporary fluctuations.)
When Are Network Fees Charged?
We charge network fees exclusively for cryptocurrency pay-outs in connection with BVNK’s Distributed Ledger Technology Payment Services (“DLT Services”). This means that any transaction relating to BVNK’s DLT Services involving the transfer of cryptocurrency from your wallet address held with BVNK to an external blockchain wallet address will incur a network fee.
What are our current network fees?
In an effort to prevent overcharging, we endeavor to charge the network fees slightly lower than the market average.
Why Do Network Fees Differ Across Blockchains?
Network fees can vary significantly across different blockchains due to several factors:
- Network Demand: Higher demand for transaction processing on a blockchain can increase the price of the network fees, as more users compete for limited block space.
- 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.
- Network Efficiency: Some blockchains are designed to be more efficient, with optimizations that reduce the cost of transactions.
- 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 transaction 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