Chia transaction fees seem really low

I have been transferring XCH between two wallets, and I noticed that for the transaction fee I can enter as little as 1 mojo, which seems infinitesimally small (and can be obtained for free from the faucets). Is this meant to be the “normal” transaction fee? With a fee this small, I am still able to get my transaction processed pretty quickly, the funds show up in my other wallet in a matter of minutes or less.

So I guess I am wondering, is it meant to stay like this (fast transaction with super tiny fees) or is the fee going to eventually end up like ETH where you need $2-10+ per transaction?

There is some discussion about the purpose of the fees here Do I earn Chia from transaction fees? - #14 by zogstrip but I did not see much detailing the intentions for fees on Chia going forward.

The process of sending funds between wallets has been so easy and fast and cheap that it seems like Chia could be a decent XLM rival if it can find mainstream adoption.

You’ve been overpaying, transaction cost is 0 right now. You can put 0 in.

Ok but the “right now” part is what I am wondering about, will transactions remain essentially free and fast forever? Seems too good to be true

My take is they have a field that for now could be zero, I,m wondering if IPO attracts financial institutions by making banking rules part of smart contract, there will be lots of transactions, who gets the fee if any.

There is a lot of room in the blocks for transactions and not enough transactions yet to cause competition for block space. If and when the transactions volume goes up, so will the fees.

I think the last AMA also discussed this a bit

The reason to add fees is to prioritize your transaction, but that is not needed as the network is currently only processing ~10% of its theoretical maximum right now.

Yes, eventually there will be a minimum fee once the number of transactions start to ramp up. In fact, I think Bram has said that if your transaction isn’t large enough to justify a $100 fee, it shouldn’t go on layer 1. But that’s probably years down the road.

For now, you can keep your mojos for yourself, or if you really want, you can reward the farmers with a small fee. Your choice.

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0.000000000001 chia for one transfer no other coin can beat the lowest fee :slight_smile:

As of now there are no fees. Until further notice. The fees might be enabled later on in the future.