Economics
Intermediate
Updated 11/26/2025
What is
Babel Fees?
A mechanism allowing users to pay transaction fees in tokens other than ERG, improving accessibility and user experience.
Babel Fees is an Ergo feature that enables users to pay transaction fees using tokens other than the native ERG. This is achieved through a marketplace where fee providers accept tokens in exchange for covering ERG fees. It dramatically improves UX for users who hold tokens but no ERG.
Key Points
- Pay fees in any accepted token
- No need to hold ERG for transactions
- Marketplace of fee providers
- Improves onboarding experience
- Works with native tokens
- Decentralized fee abstraction
Use Cases
1
New users without ERG can transact
2
Stablecoin-only wallets
3
Gaming tokens for in-game fees
4
Simplified DeFi onboarding
Technical Details
Babel Fees work through a two-step process: users create a transaction paying in tokens, fee providers see these requests and submit the actual transaction (paying ERG fees) while receiving the offered tokens. This creates a decentralized marketplace for fee payment.
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Frequently Asked Questions
Questions about Babel Fees
Common questions about this topic
How to use Spectrum DEX on Ergo?
Connect your Nautilus wallet to Spectrum Finance, select tokens to swap, review the rate and slippage, then confirm. Spectrum uses AMM liquidity pools for instant trades. You can also provide liquidity to earn fees. All trades are atomic - they complete fully or not at all, with no front-running possible.
How-to
DeFi
How to provide liquidity on Ergo?
On Spectrum Finance, select a pool, deposit equal value of both tokens, and receive LP tokens representing your share. You earn a portion of all trading fees. Withdraw anytime by returning LP tokens. Be aware of impermanent loss if token prices diverge significantly.
How-to
DeFi
Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Comparison
Getting Started
How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
How-to
Getting Started