Mining
Beginner
Updated 1/15/2025
What is
Miner Fee?
Transaction fees paid to miners for including transactions in blocks. Ergo fees are predictably low (~$0.01) and based on transaction size, not network congestion.
Miner fees (transaction fees) are payments made to miners for processing and including transactions in blocks. On Ergo, fees are calculated based on transaction size in bytes, not network demand, making them predictably low (typically 0.001-0.002 ERG, around $0.01). This contrasts with Ethereum where fees spike during congestion. Miners receive both block rewards (newly minted ERG) and accumulated transaction fees. Ergo's fee model, combined with Storage Rent, ensures long-term miner incentives even after emission ends.
Key Points
- Paid to miners for transaction processing
- Ergo fees based on transaction size, not congestion
- Typically 0.001-0.002 ERG (~$0.01)
- Predictable unlike Ethereum gas fees
- Combined with block rewards for miner income
- Storage Rent provides additional miner revenue
Use Cases
1
Estimating transaction costs
2
Understanding miner incentives
3
Comparing Ergo vs Ethereum fee models
4
Planning DeFi transactions
5
Using Babel fees for token-only payments
Technical Details
Ergo transaction fees are calculated as: baseFee + (txSizeInBytes * feePerByte). The minimum fee is 0.001 ERG. Complex transactions (multiple inputs/outputs, scripts) cost more due to larger size. Unlike Ethereum's auction-based gas model, Ergo fees don't spike during high demand. Miners prioritize transactions by fee-per-byte ratio. Babel fees allow paying fees in tokens instead of ERG.
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Frequently Asked Questions
Questions about Miner Fee
Common questions about this topic
How do NFTs work on Ergo?
Ergo NFTs are native tokens with quantity of 1, making each unique. Unlike Ethereum where NFTs need smart contracts, Ergo NFTs are first-class protocol citizens. Mint for minimal fees (~0.001 ERG), trade on SkyHarbor marketplace, and enjoy full eUTXO security. NFTs can include rich metadata and royalties.
Explainer
Technology
What is storage rent on Ergo?
Storage rent is Ergo's mechanism for long-term sustainability. Boxes (UTXOs) that remain unspent for ~4 years pay a small fee, which goes to miners. This prevents state bloat, recirculates lost coins, and ensures miners have income even after emission ends. It's like paying rent for blockchain storage space.
Explainer
Technology
What can I do with Ergo?
Ergo supports a broad ecosystem: use SigmaUSD, explore historical and current DeFi references, mix transactions with ErgoMixer where lawful, collect NFTs, mine with GPUs, bridge to other chains via Rosen, and build dApps with ErgoScript. Always verify current project status before sending funds to a third-party app.
Explainer
Getting Started
How private is Ergo blockchain?
Ergo is not private by default like Monero, but offers powerful optional privacy tools. ErgoMixer provides non-interactive, non-custodial mixing. Sigma Protocols enable zero-knowledge proofs in smart contracts. Stealth addresses hide recipients. The key difference: Ergo's privacy is programmable - you choose when and how much to reveal.
Explainer
Privacy