Transaction Fees
Every blockchain transaction requires fees. This guide explains Namada's fee system.
Why Fees Exist
Transaction fees serve important purposes:
- 🛡️ Spam prevention - Makes attacks expensive
- ⚡ Prioritization - Higher fees can mean faster processing
- 💰 Validator rewards - Compensates network operators
- 📊 Resource allocation - Prices limited block space
Fee Structure
Components
Namada fees have two parts:
Total Fee = Gas Used × Gas Price
| Component | Description |
|---|---|
| Gas | Computational cost of transaction |
| Gas Price | Price per unit of gas (in NAM) |
Gas Costs by Transaction Type
| Transaction | Approximate Gas | Approximate Fee |
|---|---|---|
| Transparent transfer | 100,000 | ~0.001 NAM |
| Shield assets | 500,000 | ~0.01 NAM |
| Shielded transfer | 500,000 | ~0.01 NAM |
| Unshield assets | 500,000 | ~0.01 NAM |
| Stake/Delegate | 150,000 | ~0.002 NAM |
| Claim rewards | 100,000 | ~0.001 NAM |
| Vote on proposal | 100,000 | ~0.001 NAM |
| IBC transfer | 200,000 | ~0.003 NAM |
Fees are approximate and vary based on network conditions
Why Shielded Costs More
Shielded transactions require:
- Zero-knowledge proof generation
- Larger transaction data
- More computation to verify
This makes them more expensive than transparent, but privacy has value!
Fee Payment
From Transparent Balance
Most fees are paid from transparent NAM:
Transaction: Shield 100 NAM
Fee: 0.01 NAM (from transparent)
Result: Shielded balance +100, Transparent balance -100.01
Fee Token Options
Namada may support paying fees in other tokens:
- NAM (default)
- Other allowlisted tokens (governance decides)
Gas Price Market
Minimum Gas Price
Protocol sets a floor:
Minimum gas price = 0.00001 NAM (example)
You can't pay less than this
Competitive Pricing
During congestion:
- Higher fees = faster inclusion
- Lower fees = may wait longer
- No congestion = minimum fee works
Checking Current Gas Price
# Via CLI
namadac gas-price
Estimating Fees
Before Sending
Most wallets show estimated fees:
- Enter transaction details
- Review fee estimate
- Adjust if needed
- Confirm
CLI Estimation
# Dry run to estimate
namadac transfer \
--source my-wallet \
--target tnam1... \
--token NAM \
--amount 100 \
--dry-run
Fee Strategies
Conservative
Always have plenty of NAM for fees:
Keep 1-2 NAM unshielded for fees
Never shield your entire balance
Cost-Efficient
Batch operations when possible:
Instead of: 5 small shields (5× fees)
Do: 1 larger shield (1× fee)
Timing
Fees may vary:
- Network busy = higher effective costs
- Network quiet = minimum fees work
- Check before large operations
Fee Recipients
Where do fees go?
Transaction Fees
│
├──→ Validators (majority)
│ Block producers
│
└──→ PGF Treasury (portion)
Public goods funding
Fee Refunds
Failed Transactions
If a transaction fails:
- Fee is usually still charged
- Prevents spam via failures
- Some failures may refund
Overpayment
If you overpay gas:
- Unused gas may be refunded
- Depends on transaction type
- Wallets usually estimate well
Common Questions
How much NAM do I need for fees?
Keep 0.5-1 NAM unshielded. This covers many transactions.
Why did my transaction fail?
Common reasons:
- Insufficient balance (amount + fee)
- Gas limit too low
- Network issues
- Invalid parameters
Can I pay fees from shielded?
Currently, most fees require transparent NAM. This may evolve.
Are fees refundable?
Failed transactions usually consume fees. Estimate correctly!
Fee Comparison
vs Ethereum
| Aspect | Namada | Ethereum |
|---|---|---|
| Fee range | 0.001-0.1 NAM | $1-100+ |
| Fee token | NAM | ETH |
| Privacy cost | ~10x transparent | No native privacy |
| Predictability | More stable | Highly variable |
vs Other Cosmos Chains
| Aspect | Namada | Typical Cosmos |
|---|---|---|
| Fee level | Low | Low |
| Privacy premium | Yes | N/A |
| IBC fees | Standard | Standard |
Minimizing Fees
Tips
- Batch transactions: Combine when possible
- Time wisely: Avoid peak congestion
- Use correct gas: Don't overpay
- Choose operations carefully: Shielded costs more
What Not to Do
- Don't set gas too low (transaction fails)
- Don't ignore fees for large operations
- Don't keep zero NAM for fees
Future Evolution
Fee mechanisms may improve:
- More fee token options
- Fee abstraction
- Sponsor transactions
- Dynamic fee markets
Stay updated through official channels.
Summary
| Key Point | Details |
|---|---|
| Fee formula | Gas Used × Gas Price |
| Typical costs | 0.001-0.1 NAM |
| Shielded premium | ~10x transparent |
| Keep available | 0.5-1 NAM for fees |
| Payment | From transparent balance |