Definition ∞ Sequencer fees are charges paid for ordering and submitting transactions to a Layer 2 rollup network. These fees compensate the entity or entities responsible for collecting user transactions, batching them, and submitting them to the main blockchain for final settlement. They are distinct from the underlying Layer 1 gas fees, though often related to the cost of posting the batched data. Sequencer fees contribute to the economic model of Layer 2 solutions, helping to cover operational expenses.
Context ∞ The structure and amount of sequencer fees are important considerations for the economic viability and user experience of Layer 2 scaling solutions. Debates often focus on decentralizing sequencers to reduce single points of failure and potential censorship risks. Future developments aim to optimize these fees to ensure affordability while maintaining network security and profitability for operators.
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