What is Storage Rent?

Storage Rent is a mechanism where unused coins pay a minimal fee after 4 years of inactivity, preventing blockchain bloat and providing permanent miner rewards beyond emission.

How much does Storage Rent cost?

Storage Rent costs approximately 0.14 ERG per UTXO every 4 years. Active users never pay rent as any transaction resets the timer.

Why is Storage Rent important?

Storage Rent ensures blockchain sustainability by preventing unlimited growth, keeping the network lightweight, and providing perpetual security through miner rewards after emission ends.

Why does Ergo charge "storage rent"? Do I have to pay just to hold ERG?

No, this isn't a holding tax—it's a way to keep the blockchain "clean." Fees apply only to coins (UTXOs) left untouched for more than 4 years. Think of it like long-term storage: if you abandon a box and never return, a tiny fee is charged for the space you occupy. This keeps the network from getting clogged with forgotten data.

Can I lose my funds if I'm a long-term investor (HODLer)?

Almost impossible. Any action—like sending your coins, even to yourself—resets the 4-year timer. The rent is so small it only affects very low-value UTXOs ("dust"). The system is designed to clean up lost change, not to penalize active users or investors.

Why is it so important to get rid of "blockchain dust"?

It directly affects decentralization. Every forgotten transaction increases the size of the blockchain state, which full nodes must store and process. Without cleanup, running a full node would become too expensive over time, leaving control to big corporations. Storage rent is a long-term guarantee that Ergo stays accessible and truly decentralized.

Where does the collected rent go? Does anyone profit from it?

The fees aren't kept by a company or burned—they're paid out to miners. This gives miners a direct incentive to help clean up the blockchain state, which aligns perfectly with the community's long-term interests. It's a self-sustaining economic model that keeps the blockchain healthy and resilient.

Storage Rent

Ergo's storage rent system ensures long-term network health by preventing blockchain bloat and creating a predictable cost for data storage.

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Core Principles

Prevent Bloat

Keeps the blockchain lean and efficient

Economic Sustainability

Creates long-term incentives for miners

Predictable Costs

Users pay a transparent fee for data storage

The Problem

Traditional blockchains face critical sustainability challenges that threaten their long-term viability

Blockchain Bloat

Traditional blockchains accumulate unused data over time, leading to inefficiency and higher costs.

Example metric

2TB+ wasted space

Illustrative figure; see docs for current parameters.

Forgotten Wallets

Lost private keys mean funds are stuck forever, reducing the effective money supply.

Example metric

4M+ lost coins

Illustrative figure; see docs for current parameters.

Network Stagnation

Accumulated dust and inactive data slow down the network and increase storage requirements.

Example metric

50% slower sync

Illustrative figure; see docs for current parameters.

How much rent would I pay?

Approximate estimator for educational purposes. Parameters may change — see docs.

Box age (years)

Box value (ERG)

Estimated rent:0.13 ERG

Top-up needed:0 ERG

Remaining value:0.87 ERG

Illustrative; see docs for formula and current parameters.

How to avoid rent

Move funds periodically to reset the 4-year timer
Consolidate dust into larger boxes
Apps: plan top-up/rotation logic into contract design

For developers

Avoid spawning many tiny boxes
Provide a "maintenance path" for rent top-ups
Track box age off-chain (indexer)

Design patterns SDK snippet

Ergo's Solution

Revolutionary storage rent mechanics that keep the blockchain healthy and sustainable

Automatic Fee Recycling

If coins are left untouched for years, a small fee is recycled back to miners.

No Forgotten Wallets

If you lose your keys, your funds aren't stuck forever in the system.

Predictable Costs

Users pay a transparent fee for long-term data storage.

How Storage Rent Works

Follow the lifecycle of a UTXO through Ergo's storage rent system. Learn more about the model in the eUTXO deep dive.

No rent accrual period

Year 0–4

Your UTXO (box) is stored for free on the blockchain

No fees, full access to your funds

Storage Rent Begins

Year 4+

Small rent fee may be deducted from box value (if applicable)

Approximate; depends on protocol parameters/min box value. See docs.

Rent Top-Up

Owner Returns

Owner can pay rent and regain full access to funds

Pay accumulated rent to restore full control

Eligible for miner claim (per protocol rules)

Box Depleted

If rent isn't paid, remaining value goes to miners

Funds return to active circulation

Why Storage Rent Matters

The benefits extend far beyond just cleaning up the blockchain

The blockchain stays clean, compact, and fast

Miners are rewarded for maintaining real, active data

Network remains healthy — even decades from now

Reduces the share of permanently lost funds ('stuck' UTXOs)

Predictable, transparent storage costs

Automatic state cleanup & miner incentives (per protocol)

Frequently Asked Questions

What's Next?

Continue exploring Ergo's sustainable blockchain technology

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Explore Ecosystem

Discover tools and applications built on Ergo's sustainable blockchain

Technical Documentation

Learn More

Deep dive into the technical details of Storage Rent implementation