What part of a swap fee goes to the exchange and what part goes to the network

05 September 2026

The network receives none of the swap fee. The exchange keeps the entire fee. The network only collects its own separate transaction fee, which is paid to miners or validators, not to the exchange.

This distinction causes frequent confusion because users see a single deduction from their trade and assume it splits between the service provider and the blockchain. It does not. A crypto swap involves two distinct payments, even when they appear as one combined charge.

The swap fee itself is the exchange’s revenue. It is a percentage of the trade size, sometimes called a trading fee or platform fee. Every exchange sets its own rate. The fee pays for the exchange’s infrastructure, order matching, customer support, and profit. None of that money reaches the blockchain.

The network fee, often called a gas fee or miner fee, is a separate charge. It pays the computers that actually process and record the transaction on the blockchain. This fee goes entirely to miners (proof-of-work chains) or validators (proof-of-stake chains). The exchange collects this fee from the user and passes it along to the network; the exchange does not keep it. If the network fee is higher than the amount collected, the exchange absorbs the loss. If it is lower, the exchange pockets the difference in practice - though that surplus is small and unpredictable.

Why does this matter for the cost of a swap? Because the network fee varies wildly. It depends on blockchain congestion, transaction complexity, and the specific asset. On busy chains the network fee can exceed the swap fee. On quiet chains it may be negligible. The exchange has no control over this part of the cost, though it chooses which blockchains to support and how aggressively to set gas limits.

The spread is a third cost, distinct from both fees. The spread is the difference between the market price and the price the exchange actually gives you. It is not a fee at all, but it reduces what you receive. The exchange may widen the spread to earn additional revenue beyond the stated swap fee. This is covered in detail under the hub page "What a crypto swap actually costs," which explains how spread, swap fees, and network fees combine to determine what you ultimately get.

So when you swap on southkoreacoin.fun, the breakdown looks like this: The network receives exactly the transaction fee for the blockchain used. That amount appears on the blockchain explorer. The exchange receives the swap fee you were quoted, plus any difference between the network fee you paid and the actual network fee incurred. It does not receive any of the network fee itself.

The important takeaway: never assume the network gets a cut of the swap fee. The network only gets paid for its own work. The exchange only gets paid for its service. They are separate payments for separate functions, even if the interface shows one total. Understanding this separation helps you compare real costs across platforms - some advertise low swap fees but charge high network fees, others do the reverse. The only way to know the true cost is to look at both numbers independently.

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