Zero Fee

Definition ∞ Zero fee refers to the absence of direct transaction costs or service charges for certain operations, particularly within digital asset platforms or blockchain networks. While truly zero-fee transactions on public blockchains are rare due to validator compensation, some protocols or centralized exchanges subsidize or eliminate user-facing fees. This approach aims to reduce barriers to entry and enhance user adoption.
Context ∞ The viability and sustainability of zero-fee models are frequently debated in crypto news, especially concerning their impact on network security and economic incentives for validators. Platforms offering zero-fee trading often employ alternative revenue streams, such as spread capture or premium services, which are scrutinized for their long-term effects on market structure and user interests. True decentralization with zero fees presents significant economic challenges.