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14 changes: 6 additions & 8 deletions docs/fees.md
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Expand Up @@ -6,22 +6,20 @@ title: "Transaction Fees in Bittensor"

This page describes the blockchain transaction fees charged by Bittensor.

Many extrinsic transactions that change the state of the blockchain are subject to a flat fee of approximately 0.0013 $\tau$.

Staking and unstaking operations incur weight-based fees as well as amount-based fees of 0.05% of the transacted liquidity.
Many extrinsic transactions that change the state of the blockchain are subject to a small, weight-based fee. Staking and unstaking operations incur weight-based fees as well as amount-based fees of 0.05% of the transacted liquidity.

Reading the state of the chain is always free.

## Flat Transaction Fees
## Weight-Based Transaction Fees

Many extrinsics in Bittensor are subject to **weight-based fee**. In Polkadot-based chains like Subtensor (Bittensor's layer 1 blockchain), [weight](https://docs.polkadot.com/polkadot-protocol/glossary/#weight) is a measure of compute time.

**Fee Details**:
- **Current rate**: $\approx0.00013 \tau$ (reduced from $\approx0.0013 \tau$)
**Fee Details**:
- **Payment source**: Sender's TAO free balance by default. For specific extrinsics, if TAO is insufficient to cover fees, the chain will charge fees in Alpha instead (see [Alpha Fallback](#alpha-fallback))
- **Denomination**: TAO by default. When fees are paid in Alpha, the TAO fee amount is converted to Alpha using the current Alpha price (no slippage).
- **Impact on liquidity**: Fees are *recycled* (deducted from `TotalIssuance`)
See: [Recycling and Burning](./glossary#recycling-and-burning)


### Staking Operations
- [`add_stake`](https://github.com/opentensor/subtensor/blob/main/pallets/subtensor/src/macros/dispatches.rs#L591)
- [`remove_stake`](https://github.com/opentensor/subtensor/blob/main/pallets/subtensor/src/macros/dispatches.rs#L635)
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## Swap Fees for Stake and Unstake Operations

In addition to the weight-based fee above, staking and unstaking operations are subject to fees based on a percentage of the quantity of transacted liquidity.
In addition to the weight-based fee above, staking and unstaking operations are subject to fees based on a percentage of the quantity of transacted liquidity. When moving stake between subnets—whether through a transfer, swap, or move—a 0.05% fee is applied. If the move happens within the same subnet, no additional fee is incurred, only the weight-based fee.

**Fee Details:**
- **Rate**: 0.05%
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