Informational Notes
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What Are Network Fees (Gas Fees) and Why Should I Pay It?

2024-11-08 02:35

1. What is a network fee?

A network fee (also called gas fee) is the small amount you pay when using a blockchain. It’s similar to a service or handling fee.

Every blockchain requires this fee to process your transaction. For example:

  • On BNB Smart Chain, you pay in BNB
  • On Ethereum, you pay in ETH
  • On TRON, you pay in TRX

Think of it like a toll road — you’re using shared infrastructure, and a small fee is needed to keep the network running.

2. Why do I have to pay a network fee?

Blockchains don’t have a central server. Instead, thousands of independent computers (called validators) work together to process transactions and keep the network secure.

The network fee is a reward you give to these validators, so they include your transaction on the blockchain.

Important: None of the network fee goes to Binance. It goes to the blockchain network.

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

4. What if I don’t have enough gas tokens?

If you don’t have enough gas tokens (like BNB, ETH, SOL, etc.), your transaction won’t go through. Here are a few ways we are offering to fix it:

Option 1: Transfer gas tokens from Binance Exchange
  • Buy some gas tokens (e.g. BNB, ETH, SOL, etc.) in Binance Exchange
  • Go to Binance Wallet, and switch to the Assets page, click Receive button, choose Withdraw from Binance Exchange
  • Select the correct token and network
  • Double check the address and network before withdrawing
  • For more information, see How to Withdraw Crypto from Binance?
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Option 2: Use BNB from your Spot or Funding Wallet (for BNB Smart Chain, Ethereum, and opBNB)
  • Make sure you have more than 0.01 BNB in either Spot or Funding Wallet
  • When you sign a transaction, select gas account and choose Binance Spot & Funding Wallet
  • Then, your Spot/Funding Wallet balance can be used to pay for gas automatically
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Option 3: Receive gas tokens from another wallet
  • If you have other addresses with gas tokens, you can transfer some to the current address.
  • Please double-check the token symbol, address and network before transferring.
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Option 4: Buy with bank card
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Troubleshooting:

  • If your gas token balance is too low, you won’t be able to make transactions
  • If you manually set a very high gas fee, try lowering it

5. Why are gas fees sometimes high and sometimes low?

Gas fees are not fixed. They depend on how busy the network is.

For EVM chains (BNB Smart Chain, Ethereum, Base, etc.) and Solana:
  • When more users are sending transactions, the network becomes congested
  • Everyone tries to pay a bit more gas to get processed faster (people offer to pay more gas to jump the line)
  • This drives the gas price up

When fewer people are using the network, gas fees go down.

For TRON:

TRON uses a different system based on resources, called Resource Model. It includes bandwidth and energy. Generally, you need resources to initiate transactions.

When you call a smart contract (e.g. transfer tokens to another address):

  • The contract creator may cover part of the energy cost
  • If they don’t have enough energy, you pay the full cost
  • TRON gives free daily bandwidth/energy, and you can also stake TRX or rent energy to get more
  • If you have enough resources, they will be used to pay for the network fee. However, if you don’t have enough resources, your TRX will be burned to pay for the transaction.

That’s why one token transfer may cost 0.5 TRX, and another might cost 25 TRX.

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