Understanding Gas Fees: How They Work and Their Impact on Transactions

Gas fees are transaction charges required to send tokens or execute smart contracts on a blockchain. This article thoroughly explains the fundamentals of gas fees, why transactions may fail, and best practices for efficient gas fee management.

What Are Gas Fees?

Gas fees are payments made to miners for processing and validating transactions on blockchain networks. Often called "miner fees," they are critical for maintaining network stability and security.

Like cars need fuel to operate, blockchain transactions require "fuel" in the form of gas fees. Each transaction uses blockchain computational resources, and miners who provide those resources receive compensation.

Gas fees are calculated with this formula:

Gas Fee = Gas Price × Gas Usage

• Gas Price: Measured in Gwei (Gigawei), users set this amount. Lower gas prices may result in slower confirmations or failed transactions, as miners prioritize higher-fee transactions.
• Gas Usage: Indicates the computational complexity required to process a transaction or smart contract. More complex operations consume more gas.

Tokens Used to Pay Gas Fees

The tokens used for gas fees depend on the blockchain network. These typically fall into three categories.

Mainnet Tokens are the standard for most blockchains. For example, ETH pays gas fees on Ethereum, and BTC serves this role on Bitcoin. These native tokens act as each blockchain’s principal currency.

Some blockchains require specific tokens for gas payments, allowing them to build distinct token economies outside their primary network currency.

Layer 2 solutions and subnets may implement their own token systems to boost transaction efficiency. For example, some Avalanche subnets use dedicated tokens instead of main-chain AVAX for gas. AVAX gas fees underpin transaction processing throughout the Avalanche ecosystem, enabling fast, low-cost activity.

Here’s a list of gas fee tokens for major blockchain networks:

Why Transactions Fail

Insufficient gas fees are a frequent problem for Web3 newcomers and a leading cause of transaction failure.

For example, if your Ethereum wallet only holds USDT and not ETH, a USDT-to-ETH swap will always fail. That’s because Ethereum gas fees must be paid in ETH—not USDT. Likewise, using Avalanche requires you to have AVAX gas fees available before initiating a transaction.

To avoid this, always keep a small balance of the mainnet currency in your wallet. For Ethereum, at least 0.01 ETH is recommended, while Avalanche users should reserve around 0.1 AVAX for gas fees.

Transactions may also fail despite paying gas fees. Network congestion is a common cause—during busy periods, processing times increase. To speed up transactions, set a higher gas price. If set too low, your transaction may not process at all.

On-chain state changes can also trigger failures. For instance, if a token you want to transfer is used in another transaction before yours, your transaction fails. This happens often with decentralized exchanges and NFT purchases.

To minimize transaction failure risk, monitor network congestion and adjust your gas price accordingly. Ensure your wallet contains enough mainnet currency to cover both the gas fee and transaction amount.

How to Resolve Insufficient Gas Fees

If you encounter a lack of gas fees, several practical solutions are available.

For example, when swapping USDT to ETH on the TRON chain but lacking TRX for gas, or running short of AVAX on Avalanche, try these approaches:

1. Deposit Gas Tokens: The simplest solution is to send the necessary tokens to your address from a centralized exchange or another wallet. On Avalanche, transfer AVAX as needed. You can also request tokens from friends or contacts. This method solves the problem quickly, provided you have a reliable source.

2. Use Wallet OTC/P2P Services: Services like QuickBuy allow you to purchase gas tokens directly with fiat currency. This is ideal for beginners who lack a crypto exchange account. You can buy AVAX and other gas tokens as needed.

By using these methods as appropriate, you can avoid transaction interruptions caused by insufficient gas fees.

Wallet "Gas-Free" Services

To make transactions more convenient, some wallets now offer innovative "gas-free" services with two primary features:

Instant Gas lets users temporarily borrow gas even if they don’t hold mainnet currency. This enables seamless processing of urgent transactions, including those with AVAX gas shortages.

Reward Tokens are earned by participating in wallet activities. These tokens can be used for gas fee rebates after transactions, effectively reducing your overall gas cost.

Currently, "gas-free" services support major blockchains including Ethereum, Tron, BNB Chain, Polygon, Base, Arbitrum, and Avalanche, with more networks on the way. AVAX gas fees can also be managed efficiently through these services.

Of note, to support the TON ecosystem, some wallet providers subsidize gas fees for TON transactions. Users can send, swap, and interact with DApps on TON without worrying about gas costs. Subsidized TON tokens are automatically credited to your reward account and can be viewed in the rewards center.

Conclusion

Gas fees are integral to blockchain transactions. Understanding the mechanism behind them is crucial for smooth, reliable operations. By learning the basics, calculation methods, and token options for gas payments, you can greatly reduce your risk of transaction failure. Familiarity with AVAX gas fees is especially important when using Avalanche.

Recognizing the causes of insufficient gas and transaction failures—and knowing how to address them—is a vital Web3 skill. Monitor network congestion and adjust gas prices as needed. Regularly check gas fee rates for each network, including AVAX, to optimize your transaction costs.

Taking advantage of wallet "gas-free" features and gas subsidies simplifies management and enables stress-free transactions. By leveraging these tools, both beginners and advanced users can transact more efficiently across blockchain ecosystems. Proper management of AVAX gas fees is key to a smooth Avalanche experience.

FAQ

What Is the Current AVAX Gas Fee?

On the Avalanche chain, gas fees average around $0.04 (roughly ¥5–6). Avalanche offers much lower, faster, and more cost-effective transactions than most other blockchains.

Is AVAX Gas Cheaper Than ETH?

AVAX gas fees are typically much lower than ETH. As of 2025, AVAX transactions usually cost just a fraction of ETH’s gas fees.

How Can I Reduce AVAX Transaction Fees?

To save on gas fees, execute transactions during times of low network congestion. You can also manually adjust gas limits and prices in your wallet to minimize costs. Staking and using the C-Chain are additional options to consider.

How Are AVAX Gas Fees Calculated?

AVAX gas fees are determined by "Gas Price × Gas Usage." Gas price varies with network congestion, while gas usage depends on transaction complexity. Always check the current gas price before submitting a transaction.

Why Do AVAX Gas Fees Increase?

Rising network congestion and transaction volume drive gas fees higher. As user activity and demand grow, so do gas costs. Future protocol improvements are expected to enhance efficiency and reduce fees further.