What Are ERC20 Fees?
GAS FEES EXPLAINED
ERC20 fees are transaction costs paid in ETH (Ether) to Ethereum validators whenever you send an ERC20 token. These fees — known as "gas" — compensate network validators for the computational work required to process and verify your transaction on the Ethereum blockchain. Unlike simple ETH transfers, ERC20 token transfers execute smart contract code, which requires more gas units and results in higher costs.
Understanding Ethereum Gas Fees
HOW IT WORKS
Every ERC20 transaction on Ethereum requires gas — measured in Gwei — to be processed. The total fee you pay is calculated as: Gas Units × Gas Price (Gwei) × ETH price. An ERC20 token transfer typically uses 65,000 gas units, compared to just 21,000 for a simple ETH transfer. This is why ERC20 fees are consistently higher than plain ETH sends.
Learn About GasKey Facts About ERC20 Fees
QUICK REFERENCE




