Glossary · Mining Basics
Transaction fees
Also: fee revenue, fees
Transaction fees are the amounts users attach to Bitcoin transactions to have them included in a block, collected by the miner of that block on top of the subsidy and forming a growing share of mining revenue as the subsidy shrinks.
Related terms
- Block reward
- The block reward is the total bitcoin a miner collects for a block, made up of the fixed block subsidy of newly issued coins plus the transaction fees paid by every transaction included in that block.
- Mempool
- The mempool is each node's holding area for valid transactions that have been broadcast but not yet included in a block, from which miners select the transactions that pay the highest fee per byte.
- FPPS
- FPPS (full pay per share) is a payout scheme that pays the PPS rate for the block subsidy plus a proportional share of the average transaction fees earned per block, so miners receive fee revenue without bearing block-finding variance.
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