What are Solana transaction fees

What are Solana transaction fees?

Solana transaction fees consist of two parts: base transaction fees and prioritization fees. Solana official sets the base transaction fee at 0.000005 SOL per transaction, which must be paid for each transaction.

The prioritization fee is optional. When the network is congested, paying only the base transaction fees may result in slow speeds. In such a case, you can add a prioritization fee to incentivize the validator to prioritize your transaction.

How is the transaction fee for Solana transaction calculated?

First, you need to understand to following terms:

Lamport: The smallest unit of Solana transaction, where 1 SOL=10^9 Lamports

Comput Unit: The computational unit for each Solana transaction, which can be obtained by simulation transactions

Unit Price: The price per transaction unit(Comput Unit), measured in Micro-Lamports

Based on the current network congestion and the situation of paying prioritization fees for transactions, you can decide how much prioritization fees pay for expedited transaction speeds:

Total network fee = Fixed network fee + Prioritization fee

Fixed transaction fee = 5000 Lamports = 0.000005 SOL

Prioritization fee = Comput Unit*Unit price

In this formula, you can define the unit price for each Comput Unit yourself. After the transaction initiation, the amount of the prioritization fees to be paid is calculated based on the set Unit Price.

Allocation rules for Solana network fees

Transaction fees are partially burned and the remaining fees are collected by the validator that produced the block that the corresponding transactions were included in. The transaction fee burn rate was initialized as 50% when inflation rewards were enabled at the beginning of 2021 and has not changed so far. These fees incentivize a validator to process as many transactions as possible during its slots in the leader schedule. Collected fees are deposited in the validator's account (listed in the leader schedule for the current slot) after processing all of the transactions included in a block.