How does Exodus calculate transaction fees?
Exodus tracks changes in the Bitcoin Network (BTC) and adjusts the fees accordingly using dynamic pricing models. These network fees are 100% paid to the Bitcoin Network (Miners) to ensure Exodus transactions are fast and delivered promptly.
When popular blockchain networks become congested, determining the right fee can make a big difference for your transaction. If a transaction fee is set too low, miners will not have an incentive to prioritize your transaction on the network resulting in delays and slow confirmations.
Blockchain networks have a hard limit on the number of transactions they can fit in each block. When there are more transactions than those that can fit in the next block, some are pushed back and won't be included (confirmed) right away.
What this means is that congested networks create a bidding market where transactions that include higher fees will be prioritized. This is because a miner keeps all the fees included in the block as payment for processing and securing them with their computing power (Hash Power) and electricity.
We have done extensive testing over the years to make sure bitcoin transactions are delivered the fastest way possible. Because Exodus prioritizes speed and reliability over low fees, Exodus will always dynamically set the best price to deliver your transactions as fast as possible.
Exodus will automatically optimize transaction fees to make sure the wallet is paying the lowest fee that will get the transaction confirmed on the next block. This means that Bitcoin transactions should confirm in ~10 minutes.
If being able to manually set a low fee is important to you, Exodus might not be the best solution and we encourage you to use other more advanced bitcoin wallets. There are a lot of highly technical BTC wallets that can give you an option to set your own fees at your own risk.
Electrum is awesome for highly technical options like this. With the current market reach of Exodus and the nature of our community's user-base, setting customized fees will not be a focus for our wallet anytime soon.
I receive mining payouts. Why are my fees so high?
For UTXO coins such as BTC and LTC, transaction fees depend largely on the number of inputs (previous deposits) you need to combine and group together to match the amount you want to send out.
When you send out dozens of these small inputs as part of a single transaction, this takes up a lot of data for the network to process. The fees on these transactions are far higher than those for sending a more reasonable, 1-3 input transaction.
We have seen fees as high as $50 - $200 for mining contract payouts that have gone on for months/years. In a few cases, the fee required to send your bitcoin is even higher than your bitcoin balance.
You can see an example of an expensive transaction that has many inputs here.
Because of this, we advise users to set their mining reward preferences to receive larger payouts even if delivered less frequently. You can think of this as deciding to get paid in dollars every few weeks, rather than getting paid pennies every day.
If you receive payouts of an asset like Ether, which does not use the same UTXO based system as bitcoin, then you don't have to worry about this.