> For the complete documentation index, see [llms.txt](https://hub.bsvblockchain.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hub.bsvblockchain.org/wiki/transactions-and-utxos/bitcoin-transactions/transaction-fees.md). # Transaction fees **Transaction fees** are fees that Bitcoin users may include in any Bitcoin Transactions. The fees may be collected by the Miner who includes the transaction in a Block. Transaction fees are a service charge paid to the Miners who record the Bitcoin ledger. The services provided by Miners are transaction validation, storage of the ledger, and the construction and security of the Bitcoin network. 1. Overview Every Bitcoin transaction transfers one or more satoshis to one or more recipients. The difference between the amount being spent from previous outputs and the amount being sent to new outputs is the transaction fee (which must be zero or more). Bitcoin's design makes it easy and efficient for the sending party to specify how much fee to pay, however it is theoretically possible for a merchant to pay the mining fees on behalf of their customers as an incentive to use their service. Services that make this possible have been proposed. When a Miner creates a block template, they are entitled to specify where the fees paid by the transactions in that block proposal should be sent. If the proposal results in a valid block that becomes a part of the Blockchain, the full block reward including the transaction fees and the block subsidy will be sent to the specified recipient. Miners are forced to wait 100 blocks before they can use coins received in a Coinbase transaction. 2. Loss of fees If a valid block awards its finder less than the available fees plus the Block subsidy, the Satoshis which are not collected are permanently destroyed. This has happened on more than 1,000 occasions in Bitcoin's history reducing the token supply by over 50 Bitcoins. An example of this can be seen in [block 164246](https://whatsonchain.com/block-height/164246) where the Miner lost 1.76 Bitcoins by not claiming the fees. 3. The Bitcoin Fee Market A default minimum fee is usually needed for a transaction to be propagated across the network and mined into a block however a market has arisen offering discounted transactions for bulk generators. Miners interface with regular users and offer their own unique pricing on a per-node basis through services such as ARC (the successor to the original Merchant API, or mAPI). User wallets can make use of these services to present users with fee rates that present estimated 'time to confirmation' giving them flexibility to choose lower fees for larger or less important transactions, without having to worry about those transactions failing to propagate. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://hub.bsvblockchain.org/wiki/transactions-and-utxos/bitcoin-transactions/transaction-fees.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.