What are Network Fees?

Understanding Cryptocurrency Network Fees

Network fees, also called transaction fees or gas fees, are charges that users must pay to perform transactions on a cryptocurrency network. They are required when you send, swap, stake, approve, or interact with tokens on a blockchain.

If you hold a token such as USDT, USDC, or another custom token, the token itself usually cannot pay the network fee. Fees are paid with the blockchain's native coin. For example, USDT on TRON (TRC20) needs TRX for fees, USDT on Ethereum (ERC20) needs ETH, and USDT on BNB Chain (BEP20) needs BNB.

These fees are essential for several reasons:

• Rewards for Miners/Validators: Network fees are a way to incentivize miners (in Proof-of-Work systems like Bitcoin) or validators (in Proof-of-Stake systems like Ethereum 2.0) for their role in processing and confirming transactions.

• Network Security: By incentivizing miners and validators, network fees help maintain the security and integrity of the blockchain. Without these fees, there would be less motivation to participate in the network, making it more vulnerable to attacks.

• Transaction Priority: During network congestion, users can pay a higher fee to have their transactions prioritized. This creates a competitive market where users have an option to get their transactions confirmed quickly, and thus gives further incentive to the miners and validators.

Why Do I Need Another Coin to Send My Tokens?

Tokens are issued on top of a blockchain network. The network still needs its own native coin to process the transaction.

Common examples:

Token or network type	Native coin needed for network fees	Example
ERC20 tokens on Ethereum	Ethereum (ETH)	USDT-ERC20, USDC-ERC20, UNI
TRC20 tokens on TRON	TRON (TRX)	USDT-TRC20
BEP20 tokens on BNB Chain	BNB Chain (BNB)	USDT-BEP20, CAKE
SPL tokens on Solana	Solana (SOL)	USDC-SPL, BONK
Jettons on TON	TON (GRAM)	USDT on TON, other Jettons
Tokens on Polygon	Polygon (POL)	USDT on Polygon, USDC on Polygon
Tokens on Arbitrum	Ethereum (ETH) on Arbitrum	USDT on Arbitrum, ARB tokens
Tokens on Base	Ethereum (ETH) on Base	USDC on Base, Base ERC20 tokens
Tokens on Optimism	Ethereum (ETH) on Optimism	OP Mainnet ERC20 tokens
Tokens on Linea	Ethereum (ETH) on Linea	USDC on Linea, Linea ERC20 tokens
Tokens on Blast	Ethereum (ETH) on Blast	Blast ERC20 tokens
Tokens on Avalanche C-Chain	Avalanche (AVAX)	USDT on Avalanche, Avalanche ERC20 tokens
Tokens on Fantom	Fantom (FTM)	Fantom ERC20 tokens
Tokens on Gnosis Chain	Gnosis Chain (xDAI)	Gnosis Chain ERC20 tokens
Tokens on zkSync Era	Ethereum (ETH) on zkSync Era	zkSync Era ERC20 tokens
Tokens on Celo	Celo (CELO)	USDT on Celo, Celo ERC20 tokens
Tokens on Monad	Monad (MON)	USDC on Monad, Monad ERC20 tokens
Tokens on HyperEVM	HyperEVM (HYPE)	USDC on HyperEVM, HyperEVM ERC20 tokens
Tokens on Aptos	Aptos (APT)	Aptos tokens
Sui Coins	Sui (SUI)	Sui network tokens
Algorand Standard Assets	Algorand (ALGO)	ASA tokens
XRP Ledger issued tokens	XRP Ledger (XRP)	XRPL issued assets
Stellar assets	Stellar Lumens (XLM)	Stellar issued assets

important

The native fee coin must be on the same network as the token you are trying to move. For example, ETH on Ethereum cannot pay fees for USDT on TRON. To send USDT-TRC20, you need TRX in the same TRON wallet.

What Does "Insufficient" Mean When I Have Tokens?

If Gem Wallet shows an Insufficient ETH, Insufficient TRX, Insufficient BNB, Insufficient SOL, or similar message, it usually means your token balance is available but you do not have enough of the native coin to pay the network fee.

To fix it:

1. Check which network your token is on.
2. Enable the native coin for that network in Gem Wallet if it is hidden.
3. Buy or receive a small amount of the native coin into the same wallet.
4. Try the send, swap, or token approval again.

tip

If you are trying to send USDT on TRON and do not have TRX, follow the dedicated guide: Why can’t I send USDT from Gem Wallet?.

Examples of Network Fees

• Ethereum (ETH)

Ethereum uses the term "gas" to measure the computational effort required to process transactions and smart contracts. Gas fees are paid in ETH and can vary significantly based on network activity.

ERC20 token transfers, token approvals, and swaps on Ethereum also require ETH for gas. The ERC20 token being transferred does not pay the fee.

tip

Learn more about Ethereum and network fees.

• Solana (SOL)

Solana uses its own Proof of History (PoH) consensus to achieve high throughput and low transaction costs. Solana's network fees are very low compared to other major blockchains.

SPL token transfers on Solana require a small amount of SOL for network fees.

tip

Learn more about Solana and network fees.

• TRON (TRX)

TRON uses TRX to pay network fees for TRX and TRC20 token transactions. If you have USDT-TRC20 but no TRX, you will not be able to send or swap the USDT until the wallet has enough TRX for the fee.

tip

Learn more about TRON and network fees.

• BNB Chain (BNB)

BNB Chain uses BNB to pay network fees. This applies to sending BNB and sending or swapping BEP20 tokens on BNB Chain.

tip

Learn more about BNB Chain and network fees.

• TON (GRAM)

TON uses GRAM to pay network fees. Sending Jettons, such as USDT on TON, requires enough GRAM in the same wallet to pay for gas.

tip

Learn more about TON and network fees.

More Network Fee Examples

The examples below reuse screenshots from the blockchain FAQs. They show the same pattern: the network fee is paid with the native coin for that specific network.

• Polygon uses Polygon (POL) for network fees when sending POL or tokens on Polygon.

• Base uses Ethereum (ETH) on Base for network fees.

• Sui uses Sui (SUI) for network fees.

• Monad uses Monad (MON) for network fees when sending MON or Monad ERC20 tokens.

tip

For other networks, check the full supported blockchains list and open the specific blockchain FAQ to learn which native coin is required for fees.

Does Gem Wallet Take Network Fees?

• Gem Wallet is a non-custodial wallet, not a centralized exchange, enabling anonymous interaction with blockchains.

• No personal information is collected from users, ensuring privacy.

• Transactions are submitted directly to the blockchain network, with gas fees paid solely to miners or validators.

• Gem Wallet holds no user funds and does not retain any portion of the network fees.

• All fees are determined by the blockchain network (e.g., Ethereum gas fees) and vary based on network congestion.