Do I earn Chia from transaction fees?

I’m new here, and trying to understand how to earn Chia.

I know I need to win a block by grow my plots, that part I understand.

But what I did not understand is about I earn on transaction fee’s to if so, how what can I est. the fee I’m earning this way?

And will there be more ways to earn Chia on?

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What is your question? There are too many questions here. I’m going to simplify it to one question, because I think the others are already answered in many places.

Do you earn Chia from transaction fees? I don’t know – I see transaction fee stuff listed in the GUI and I don’t understand it.

What are XCH User Transaction Fees? Why do I have 0.0013 of a Chia there?

Maybe someone who does understand it can educate us?

Very interesting, :slight_smile: I think we earn on transaction fee’s to, need to wait and see, thanks :smiley:

My understanding is that when you farm/win a block, you get the 2 XCH rewards and the fees associated to the transactions in the block.

I wonder if it also shows in the Wallet tab? :thinking:

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Well I earned a bit more of … whatever these XCH Transaction Fees are …

I thought there were no fees at the moment. Someone must be putting an amount in the fee field when doing transactions?

On a semi related note, you can use the faucet and receive XCH instantly now. Well, it was instant for me. I don’t think there is any fee for that.

I remember in an AMA somebody asking where the transaction fees go and the answer was “to the farmer”.

@codinghorror Have you ever transferred XCH to somebody else so far? Maybe those same coins are transferred between other people now and the fee they pay is paid to you.

No, never. I’ve only plotted and farmed. Have not done anything else to my knowledge.

ok, nevermind then. Just one theory down the drain :slight_smile:

Yes, those are transaction fees. Currently the minimum fee is 0, but some people still will add a small amount of XCH, which goes to the farmer.

Once pools are running, the fees + 0.25 XCH goes to the farmer, and 1.75 XCH goes to the pool, which then gets redistributed according to the pool’s rules.

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Just seen this thread:

Basically somebody farmed a block and won 2.0002 chia, similar to your situation @codinghorror

I still don’t get whose pocket that 0.0002 XCH is coming out of though. I guess it’s like the time lord is sending you 2 XCH + fees just like a normal transaction. Also interesting that in your screenshot the total fee is not multiple of 0.0002 so it’s not even a fixed and automated process looks like.

Arrgh! Everything about crypto is hurting my brain :face_with_head_bandage:


When you send XCH you have to enter a fee. The fee can be 0 but if it’s greater than 0 then the farmers who win the block that includes the transaction get to share the fees.

The fee is used to sort all the pending transactions so those with higher fees get processed first.


I understand that’s what happens when somebody sends it. There are 2 parties involved: sender pays the fee, farmer receives it.

The confusion is who is the second party when you farm a block? Farmer still receives the fee but who pays it? Is it the time lord?

Do timelords have specific budgets to pay the fees?

Why doesn’t everybody earn 2 XCH + transaction fees all the time and it only happens sometimes?

Why is the fee changing? Who is setting the transaction fee when you farm a block?

Anyway, thanks for your response. Hope I’ll learn more about these when I actually earn coins myself :slightly_smiling_face:

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Let’s see if I can explain better :sweat_smile:

When Alice wants to send some :seedling: to Bob, she enters Bob’s wallet address, the amount, a fee and clicks Send.

Now the “transaction” is put in the mempool, aka a queue for all the transactions before they are validated and added to a block in the blockchain.

Joe, the lucky farmer, founds a proof and win the block that includes Alice’s transaction. Joe earns the 2 XCH reward from the network as well as all the transactions fees (there can be multiple transactions in a block, I don’t know the maximum number though :thinking:). So Joe gets the fee that Alice paid when she made her transaction.

In reality, it’s slightly more complex as more than 1 farmer can win a block, so I assume the fees gets split across all winners.


Many thanks for the explanation. I wasn’t aware of the relationship between transactions and blocks. Kinda makes more sense now. There is no central place to manage transactions. They are in the blockchain just like everything else.

Just took a look at Blocks in ChiaExplorer and noticed there are 2 different types of blocks: “Block” and “TX Block”

Also went over this old document again: So You Want to be a Space Farmer?

It states

Plots are a totally cross platform file full of cryptographic hashes that will allow you to potentially win the next block and be rewarded with transaction fees in that block and the chia block reward.

The cryptographic details underneath this is way above my pay-grade but at least now I know timelords have nothing to do with any of this :slight_smile:

Thanks again for your help.

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Yeah I’m not quite sure what’s the difference there. Can all Blocks be TX Blocks? Is a TX Block, just a regular Block but with associated transactions? :thinking:


I’m in the same boat :wink:

Yeah, I think timelords are only there to handle the proof of time.

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I wonder if anyone’s sent a transaction right as they were about to farm a block, making the transaction fees go back to the same address yet.

It is entirely possible, and indeed likely, that someone processes a block that they themselves have created a transaction in. If a given farmer had a way to predict which blocks he would write, then he could game the system with this exploit. This is where proof of space comes in, which is essentially a way to randomize the farmer who gets to write the next block.

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Hi ! I am still confused on the transaction fees. The farmers get the fee so that is great as a farmer but are we farming for the fee the same way we are farming for chia ?
Or do I get the fees for the blockchain of the chia I have farmed already ? Then there aren’t much transactions already so I shouldn’t get any. And if I don’t use my chia will I then not get any fee ? Is it then better to sell the chia when we have farmed it and hope it has a lot of transactions ?

I guess it is a similar system to bitcoin but I don’t understand that either.

Basically, fees are a way that someone spending Chia can bribe their way forward in the queue to have their transaction processed more quickly.

This functionality exists because Chia is extremely limited in the number of transactions per second it can handle (20).

Today this doesn’t matter because no one is able to spend chia on anything so there are very few transactions and there is no reason to add a transaction fee on when you are using chia. However not everyone understands what that fee is for so some people are probably putting a number in there. Or it might also be people who are just putting a number in there to experiment since we are all learning about Chia.

The transaction fees become important theoretically at some point in the future because In most cases you want to have your transaction handled as quickly as possible so you know that the person buying something from you has the funds available and that they have been transferred to you.

My concern here as with most cryptocurrencies is that while bitcoins 7 transactions per second is ridiculous, 20 is not much better.

For comparison real payment systems that are designed to work at scale, VisaNet for example, can handle 1700 transactions per second.

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