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intelliot authored Jan 6, 2024
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# Fees

Rippled's fee mechanism consists of several interrelated processes:
`rippled`'s fee mechanism consists of several interrelated processes:

1. [Rapid Fee escalation](#fee-escalation)
2. [The Transaction Queue](#transaction-queue)

## Fee Escalation

The guiding principal of fee escalation is that when things are going
smoothly, fees stay low, but as soon as high levels of traffic appear
on the network, fees will grow quickly to extreme levels. This should
dissuade malicious users from abusing the system, while giving
legitimate users the ability to pay a higher fee to get high-priority
transactions into the open ledger, even during unfavorable conditions.
The guiding principle of fee escalation is that when things are going
smoothly, fees remain low. However, as soon as high levels of traffic
appear on the network, fees quickly rise to extreme levels. This is
designed to dissuade malicious users from abusing the system, while
allowing legitimate users the ability to pay a higher fee for
high-priority transactions. This ensures their inclusion in the open
ledger, even under unfavorable conditions.

How fees escalate:

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### Load Fee

Each rippled server maintains a minimum cost threshold based on its current load. If you submit a transaction with a fee that is lower than the current load-based transaction cost of the rippled server, the server neither applies nor relays the transaction to its peers. A transaction is very unlikely to survive the consensus process unless its transaction fee value meets the requirements of a majority of servers.
Each `rippled` server maintains a minimum cost threshold based on its current load. If you submit a transaction with a fee that is lower than the current load-based transaction cost of the `rippled` server, the server neither applies nor relays the transaction to its peers. A transaction is very unlikely to survive the consensus process unless its transaction fee value meets the requirements of a majority of servers.

### Reference Transaction

In this document, a "Reference Transaction" is any currently implemented
single-signed transaction (eg. Payment, Account Set, Offer Create, etc)
that requires a fee.

In the future, there may be other transaction types that require
more (or less) work for rippled to process. Those transactions may have
a higher (or lower) base fee, requiring a correspondingly higher (or
lower) fee to get into the same position as a reference transaction.
There are other transaction types that may have a higher base fee, particularly in cases where the transaction is likely to require more work for `rippled` to process. These transactions require a correspondingly higher fee to achieve the same position as a reference transaction.

### Consensus Health

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