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Dynamic send fees

Timothy Stranex
1 minute read

Earlier this year, we began charging fees for Bitcoin send and receive transactions. You can read more about the reasons for this in our older blog post about network fees. Since then, fees on the Bitcoin network have continued to rise substantially:

Chart of Bitcoin network fees over time

As such, we are switching to a new scheme whereby a dynamic fee will be charged when sending to a Bitcoin address as of 26 May 2017. The fee will vary depending on the Bitcoin network traffic and will be displayed before you confirm the transaction. The Bitcoin network traffic also varies from day to day, and sometimes the necessary fee is larger or smaller (e.g. it’s often lower on weekends).

These fees go directly towards paying the Bitcoin network fees - Luno doesn’t make any profit from them. Implementing dynamic fees will also help to reduce the likelihood of Bitcoin sends being delayed.

Free alternative: Sending to an email address or mobile number is instant and free.

We are also working on new “layer 2” solutions for processing off-chain transactions faster and with lower fees such as Moonbeam.

Avatar Timothy Stranex
Author

Timothy Stranex

Timothy is co-founder and CTO at Luno. Before founding Luno, Timothy was a software engineer at Google in Switzerland. He holds an MSc in Theoretical Physics from the University of Zürich and a BSc in Physics, Mathematics and Computer Science from the University of Cape Town.

It’s never too late to get started with Bitcoin. Learn, buy and use Bitcoin with Luno now.

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