Dec 8, 20255 min readeUTXO & Smart ContractsIntermediate

Babel Fees: Pay Transaction Fees with Any Token

Gas abstraction through eUTXO: pay fees in the token you hold, not the one the protocol demands.

Babel Fees

gas abstraction

transaction fees

eUTXO

DeFi

token payments

Ergo

on-chain markets

Click to Enlarge

About This Infographic

Babel Fees solve a common blockchain UX problem: users shouldn't need to hold the native token just to move their assets. On Ergo, Babel Fees let you pay transaction costs in whatever token you already have.

The mechanism works through on-chain intermediaries who accept your tokens and cover the ERG fee on your behalf. This creates a free market for fee payment: intermediaries compete on exchange rates, and users get better UX without sacrificing decentralization.

Unlike account-based 'gas sponsorship' that requires trusted relayers, Babel Fees leverage eUTXO's atomic transaction model. The swap happens in the same transaction as your payment, with no counterparty risk.

The Problem

Traditional blockchains require native tokens for fees.
Users holding only stablecoins or NFTs can't transact.
New users must acquire native tokens before doing anything useful.
This creates friction and poor onboarding experience.

The Babel Fees Solution

Users submit transactions offering tokens as fee payment.
Intermediaries watch for these 'Babel boxes' and fill them.
The intermediary pays ERG to miners, receives user's tokens.
Everything settles atomically in one transaction.
Market competition keeps exchange rates fair.

Key Points

Pay fees in any token — No need to hold ERG just to transact.

On-chain market — Intermediaries compete to offer the best exchange rates.

Atomic swaps — Token-to-ERG exchange happens in the same transaction.

No trusted relayers — Unlike account-model gas sponsorship, no counterparty risk.

Better UX for newcomers — Onboard users without forcing them to acquire ERG first.

DeFi-native — Works seamlessly with DEXes, lending, and other protocols.

How to Read This Infographic

01.

Start with the problem: users need ERG to pay fees, but may only hold other tokens.

02.

See how Babel Fees create an on-chain market where intermediaries offer to pay ERG fees in exchange for tokens.

03.

Understand the atomic swap: user's tokens and intermediary's ERG exchange in a single transaction.

04.

Notice the UX benefit: users never need to acquire ERG separately just to move their assets.

05.

Connect to eUTXO: this works because Ergo transactions can compose multiple inputs/outputs atomically.

Usage Guidelines

• You can use this infographic in presentations, blog posts, or educational materials
• Please keep the attribution link to ergoblockchain.org
• For custom branding or editable files, contact the Ergo community

Embed this infographic

Copy the code below to use this infographic in your blog or website.
Please keep the link to ergoblockchain.org.

<a href="https://ergoblockchain.org/infographics/ergo-babel-fees-pay-with-any-token?utm_source=embed&utm_medium=referral" target="_blank" rel="noopener noreferrer">
  <img
    src="https://ergoblockchain.org/infographics/ergo-babel-fees-pay-with-any-token.png"
    alt="Infographic explaining Ergo Babel Fees: how users can pay transaction fees in any token while miners receive ERG through automated on-chain exchange."
    style="max-width:100%; height:auto; border:0;"
    loading="lazy"
  />
</a>
<p style="font-size:12px; color:#888;">
  Source: <a href="https://ergoblockchain.org/infographics/ergo-babel-fees-pay-with-any-token?utm_source=embed&utm_medium=referral" target="_blank" rel="noopener noreferrer">ergoblockchain.org</a>
</p>

Explore More Ergo Infographics

Discover visual guides to Ergo's PoW, eUTXO smart contracts, storage rent, privacy and more.

Browse All Infographics