The network’s transaction costs are defined by its pricing structure, which is determined by the amount of data and processing resources available for use by the transaction. Due to the fact, it is based on the Ethereum network, transaction fees are paid in Ether (ETH), the Ethereum network’s native cryptocurrency. When a user sends a transaction to the Ethereum network, it is analyzed by the site’s nodes, which are in charge of executing smart contracts and changing the network’s state. The nodes are thereafter compensated with ETH for their efforts, and the transaction fees are calculated based on the number of computing resources consumed by the transaction. This network calculates transaction costs using a notion called “gas”, where the overall amount of gas consumed by the transaction determines the processing fee. The average exchange fee for this network is about 0.001 ETH, which is approximately a few USD dollars. Based on the highest amount of coins in an account, each user usually has a certain number of free transactions per month. When users run out of free transactions, they automatically must pay for the gas fee in RON.
How it Works
The network employs something known as “gas” to calculate the compute resources required to complete any exchange. Each operation in a blockchain network consumes a particular quantity of gas, and the processing charge is based on the overall amount of gas consumed by the transaction. Trading costs usually vary based on network congestion, gas prices, and the intricacy of the smart contract being executed. The average transaction cost incurred using the Ethereum network is about 0.001 ETH, which is approximately a few USD dollars. Users are given a certain number of free transactions to use per month depending on how much is in their account.
Computing the Cost of Transactions
Trading costs usually vary based on network congestion, gas prices, etc. The following are ways exchange charges are calculated on the network:
Using Free Transactions
Based on the highest value NFT in the account, each account will receive a specific amount of transactions they do not have to pay for per month. The total unpaid transactions available to every user are calculated by taking the average of their Axie assets and the number of days they possessed them in a month. For example, if a user only owns a Mystic Axie for one day in a thirty-day month, the formula is (1 Mystic Axie * 1 day) / 30 = 0 (decimal is ignored), which means they will have no gratis transactions for the month. To be eligible for the free transactions, a wallet must contain the Mystic Axie for the whole month.
Paying for a Transaction
When users run out of gratis transactions, they automatically must pay for the gas fee in RON. They are allowed to change the gas price in each transaction, provided they keep in mind the amount of RON they will have to spend for each unit of gas, usually referred to as the gas price. The gas limit is the amount of gas they are willing to pay and cannot be altered. Users pay these fees to node validators to reimburse them for the computational power needed to process and validate their trades on the blockchain.
It is crucial to remember that the trading fee of Axie Infinity can fluctuate over time, therefore it is best to double-check the current costs with the network or wallet provider before carrying out a network transaction. Additionally, some transactions may necessitate extra fees, such as those for employing a specific smart contract or performing a complicated network activity.
