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# Transaction Fees

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.

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](/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](/docs/protocol/fees/spec-fee-amm).

## Learn more about Tempo fees

<Cards>
  <Card description="Provide liquidity to enable fee token conversions" to="/docs/guide/stablecoin-dex/managing-fee-liquidity" icon="lucide:droplet" title="Managing Fee Liquidity" />

  <Card description="Complete fee system specification" to="/docs/protocol/fees/spec-fee" icon="lucide:file-text" title="Fee Specification" />

  <Card description="Fee AMM protocol specification" to="/docs/protocol/fees/spec-fee-amm" icon="lucide:file-text" title="Fee AMM Specification" />

  <Card description="Sponsor transaction fees" to="/docs/guide/payments/sponsor-user-fees" icon="lucide:shield-check" title="Guide: Sponsor Transaction Fees" />

  <Card description="Pay fees in any supported stablecoin" to="/docs/guide/payments/pay-fees-in-any-stablecoin" icon="lucide:wallet" title="Guide: Pay Fees in Any Supported Stablecoin" />
</Cards>
