Dynamic Miner Fees

Since the beginning RTWire has charged a fixed miner fee for each debit from our system to the blockchain. This mirrored the original Bitcoin client functionality and ensured that you knew exactly how much each debit was going to cost before making it (miner fee + system fee). However behind the scenes we employ a predictive fee system that responded to network congestion and adjusted the miner fee to suit.

Full disclosure; we can often get away with paying miners less than our fixed miner fee we charge you and still get your transactions included in the first two blocks. As a result, this almost always allows us to generate revenue from both miner fee and system fee. Understandably some of you have found it great to have a consistent transaction fee from us. Others have wondered why, on average, have they had to pay more fees than required by the bitcoin network to get their transaction included in a block.

Ultimately we don't want you to think that our miner fees are for hidden revenue generation. We want to be clear that our system fee is the only revenue we want to make from your transaction. Therefore, from now on we will only charge you the actual miner fee we pay the Bitcoin network. This fee will vary depending on the state of the Bitcoin network but will be a completely fair representation of how much a transaction costs us to send to the network. You will also be able to use a block explorer such as Blockchain.info to verify for yourself that the miner fee is fair. Note that we usually batch transaction outputs of multiple customers into one transaction allowing you to share the savings associated with output batching.

As the title says our miner fees are now dynamic and can change on a second by second basis. Therefore we have also introduced the Fees API Endpoint to allow you to get an estimate of our current miner fees. We have also display a brief history of miner fee fluctuations over the past few blocks.

If you would like to learn more about how transaction fees are evolving on the Bitcoin network then we strongly encourage you to read Jameson Lopp's excellent article on the the subject.

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