---
title: Understanding Fees in the Pyth Network Protocol
description: >-
  Learn how Pyth Network’s governance sets optional data fees for on-chain price
  feeds, compensates providers, and ensures transparent, efficient pricing.
full: false
index: false
---

# Fees

The Pyth Network protocol has been designed to allow for the optional enablement of data fees in order to update the state of an on-chain price feeds.
The ongoing existence of and size of the fee will be determined by governance on a per-blockchain basis; until governance is live, the fee will be 1 of the smallest denomination of the blockchain's native token (e.g., 1 wei on Ethereum).
The fees collected by the protocol will go toward compensating data providers and possibly other uses as determined by governance.

Note that protocols integrating with Pyth Network can pass these fees along to their users.
Whenever a user submits a transaction that requires a price update, that transaction can also include payment of the necessary fee.
This approach charges end users in proportion to their usage of Pyth Network data.
The Pyth Network SDKs use this approach by default and include all of the necessary logic for computing and sending the fee along with every transaction.

In addition to update fees, end users ultimately bear the gas cost of updating the Pyth Network price feeds, which means that their transactions cost a little more than they would in the push model.
However, the cost of a single price update is minimal, so the combined gas and update fee should only be a small portion of the overall transaction cost for the end user.
