What are network fees?

Network fees, also known as gas fees, are certain amounts of cryptocurrency you need to pay to complete a transaction on a blockchain. You can think of it like a service charge or a delivery fee, which is used to facilitate your transactions to the destination on the blockchain.

Why do I need to pay a network fee?

Web3 transactions aren’t managed by a single company, they are processed by a network of computers known as nodes, such as validators and miners, that work together to keep the blockchain running. When a Web3 wallet submits your transaction, these nodes charge a network fee to package it onto the blockchain. This fee serves as a reward for the nodes and compensates them for the computing power and resources they use to confirm and secure each transaction.

When do I have to pay a network fee?

You need to pay a network fee every time you make a transaction on the blockchain. This includes activities like sending tokens to another person, swapping tokens, or interacting with dApps.

Who decides how much the network fee will be?

Network fees are decided by the network, which are dynamic and may change based on demand. If a lot of transactions were submitted at the same time, the network fee may go up, and vice versa.

Binance Web3 Wallet will automatically calculate the optimal network fee based on the network conditions.

What happens if I don’t have sufficient funds to pay for the network fee?

If you don’t have sufficient funds to cover the network fee, your transaction won’t go through. Therefore, we recommend keeping a small balance of the blockchain’s native token in your wallet for network fees before submitting any transactions.

For certain networks, we support withdrawing tokens from your Binance Spot or Funding Wallet to your Web3 Wallet to cover the network fee during the transaction. In the future, more methods will be supported for paying network fees, stay tuned for updates.