What Are Gas Fees on Ethereum?
Each transaction on the Ethereum blockchain requires gas fees. Originally, these fees were paid to miners on Ethereum. Miners on proof-of-work mining models (like what Ethereum and Bitcoin are based on) use their computing power through a decentralized computer network to process and confirm transactions. After the Ethereum London Hard fork (EIP-1559) went into effect, gas fees are now burnt and therefore not paid to miners. Miners are compensated via Priority Fees.
What Are Gas Fees on Nswap?
To be clarified, gas fees don’t go into the pocket of Nswap. Nswap does not receive any of the fees and is not able to refund gas fees. Gas does not belong to our platform, but a technical function that occurs on the chain. The cost of gas fees is also something out of the control of Nswap. Congestion and activity on Ethereum are what determine the costs. A high level of activity on Ethereum will cause the cost of gas fees to increase. For instance, if the time window for the mint of a very popular project is quite short, then there may be a lot of activity on the Ethereum network, increasing gas fees.
Gas fees can be divided into categories of one-time fees or recurring fees.
Two Categories of ETH Gas Fees
One-Time Fees
If you’ve never sold an NFT, you’ll then need to pay an account initialization fee. This fee is slightly higher than typical Ethereum transactions. Also, a one-time fee is required when you interact with a cryptocurrency for the first time, such as when you approve either a USDC or DAI token.
Recurring Fees
Recurring fees occur on Ethereum when you:
- Accept an offer for an NFT
- Transfer or give an NFT to someone
- Buy an NFT
- Cancel a listing
- Cancel a bid
- Convert between WETH and ETH
Which Actions Are Gas-Free?
You do not need to pay any gas fees to do any of the following:
- Listing an NFT at a fixed price
- Lowering the price of a listed NFT (Raising the price requires a transaction to the blockchain and therefore needs a gas fee)
- Making offer for an NFT and set an expiration
Note: Gas fees are pending in accordance with specific situations.
About NSWAP, Inc.: NSWAP, Inc. is building a decentralized, multi-chain information aggregation platform (Launchpad) and open market (Marketplace) for NFTs. We hope that everyone has the opportunity to experience, access, and own NFTs. With Nswap, you can access NFT collections for sale on our primary Launchpad and trade them freely on our secondary Marketplace.
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