Beyond the standard network transaction fee, the XRP Ledger supports an optional transfer fee that token issuers can apply to their issued tokens. This is separate from the XRP network fee and is configured per token by its issuer.
What Is a Transfer Fee?
A transfer fee is a percentage-based charge applied when users transfer an issuer's tokens among themselves. The sender is debited an extra amount based on the transfer fee rate, while the recipient receives the intended amount. The difference — the transfer fee — is burned for standard tokens, reducing the issuer's outstanding obligations.
How Transfer Fees Work
For example, if ACME Bank issues a EUR stablecoin with a 1% transfer fee and Alice wants Charlie to receive 2 EUR.ACME, Alice must send 2.02 EUR.ACME. After the transaction, ACME's outstanding liabilities decrease by 0.02 EUR, reducing the amount it needs to hold in its off-ledger reserve.
Transfer fees apply whenever tokens move between non-issuer accounts. Sending directly to or from the issuing account is exempt from the transfer fee.
Setting the Transfer Fee
Token issuers configure the transfer fee using an AccountSet transaction, specifying a TransferRate value. The rate must fall between 0% and 100%, measured in increments of 0.0000001%. If the TransferRate is omitted, no transfer fee applies. The fix1201 amendment (enabled November 2017) capped the maximum transfer fee at 100%.
Transfer Fees for NFTs
Non-fungible tokens on XRPL also support transfer fees, but the mechanics differ from fungible tokens. NFT transfer fees are collected as a royalty on secondary market sales rather than as a percentage of the token quantity transferred. Sellers and buyers should review NFT metadata for transfer fee information before transacting.
Difference From Network Fees
It is important to distinguish between XRPL's network transaction fee (10 drops, burned automatically) and issuer-set transfer fees (optional, configured per token). Every transaction on XRPL pays the network fee regardless of whether a transfer fee also applies. These two fees serve different purposes and are charged independently.
Appropriate Use Cases
Transfer fees are most appropriate for tokens backed by real-world assets, where the fee offsets the issuer's operational costs for managing reserves and compliance. They are generally not appropriate for tokens without off-ledger backing, as the burned tokens reduce supply without any corresponding reserve reduction.
Consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et dolore magna aliquyam erat, sed diam voluptua. At vero eos et accusam et justo duo dolores et ea rebum.
Vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis.
Lorem ipsum dolor sit amet.
Consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et dolore magna aliquyam erat, sed diam voluptua. At vero eos et accusam et justo duo dolores et ea rebum.