# Understanding transaction fees on Tempo

Tempo has no native token. Instead, transaction fees—including both gas fees and priority fees—can be paid directly in stablecoins. When you send a transaction, you can choose which supported stablecoin to use for fees.

## Choose a fee setup

| Goal | Use |
| --- | --- |
| Choose the fee token for one transaction | Pass [`feeToken`](https://tempo.xyz/developers/docs/guide/payments/pay-fees-in-any-stablecoin#quick-fee-token-snippet). |
| Set an account's persistent default fee token | Call [`client.fee.setUserToken`](https://tempo.xyz/developers/docs/guide/payments/pay-fees-in-any-stablecoin#set-a-default-user-fee-token). |
| Have another local account pay | Pass the account as [`feePayer`](https://tempo.xyz/developers/docs/guide/tempo-transaction#fee-sponsorship). |
| Request sponsorship from a relay or API | Configure a relay and pass [`feePayer: true`](https://tempo.xyz/developers/docs/api/fee-payer#sponsor-transaction-fees). |

For a stablecoin to be accepted, it must be USD-denominated, issued as a native TIP-20 contract, and have sufficient liquidity on the native Fee AMM.

Tempo uses a bounded dynamic base fee. It can fall when block gas usage is below target and rise back toward the cap when the network is busy. For a 50,000 gas transfer, the base-fee cap is about $0.0006, with a quiet-period floor around $0.00003. All fees accrue to the validator who proposes the block.

:::info[Dynamic base fee]
T7 activated the dynamic base fee on testnet and mainnet. See the [T7 network upgrade](https://tempo.xyz/developers/docs/protocol/upgrades/t7) and [dynamic base fee specification](https://tips.sh/1067).
:::

For pool mechanics, swaps, liquidity accounting, and fee-token conversion rules, see the [Fee AMM specification](https://tempo.xyz/developers/docs/protocol/fees/spec-fee-amm).

## Learn more about Tempo fees

* [Managing Fee Liquidity](https://tempo.xyz/developers/docs/guide/stablecoin-dex/managing-fee-liquidity) — Provide liquidity to enable fee token conversions
* [Fee Specification](https://tempo.xyz/developers/docs/protocol/fees/spec-fee) — Complete fee system specification
* [Fee AMM Specification](https://tempo.xyz/developers/docs/protocol/fees/spec-fee-amm) — Fee AMM protocol specification
* [Guide: Sponsor Transaction Fees](https://tempo.xyz/developers/docs/guide/payments/sponsor-user-fees) — Sponsor transaction fees
* [Guide: Pay Fees in Any Supported Stablecoin](https://tempo.xyz/developers/docs/guide/payments/pay-fees-in-any-stablecoin) — Pay fees in any supported stablecoin