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Quiz Entry - updated: 2026.07.30

What is a transaction fee?

The payment the transaction initiator gives the block producer for processing it, roughly gas used multiplied by the gas price.

It compensates node operators for real resources and rations limited block space — when demand is high, users bid gas prices up and fees rise. Some chains additionally burn part of the fee.

From Quiz: IOTHACK / IOTHACK Glossary | Updated: Jul 30, 2026