What is Gas Fee?
Gas fees are transaction fees on the Ethereum blockchain. They are paid to miners who help record the transaction on the Ethereum blockchain.
Since many ERC-20 tokens like UNI, SUSHI, SNX, COMP, and MKR use the Ethereum blockchain, their transactions carry a Gas fee. Similarly, transactions of all Non-fungible Tokens (NFTs) on the Ethereum blockchain also attract a Gas fee.
Gas fees are decided by market demand for transactions on the Ethereum network. The amount of Gas is proportional to the size and execution speed of the smart contract.
Gas fees are paid in Gwei, a denomination of Ethereum’s native currency Ether (ETH).
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