Users of Magic Eden Bitcoin have observed variations in fee rates when compared to popular Block Explorers like mempool.space. This article aims to provide a clear explanation for the observed differences.
Fee rate display: Standard vs. Ordinal transactions
Mempool.space and various informational resources commonly display an expected fee for a "standard" Bitcoin transaction. It's essential to recognize that ordinal purchases on Magic Eden are typically larger than standard transactions. This disparity contributes to the differences in fee rates between the standard fee rate and the effective charges when using Magic Eden for buying, selling, and minting digital artifacts.
Understanding the distinction
Users may conflate fees with fee rates. Mempool.space indicates the expected fee for a "standard" transaction, but an ordinal purchase transaction, for example is usually several times larger in size, resulting in larger overall transaction fees.
Fee spikes and offers on Bitcoin Ordinals
During periods of fee spikes or when transaction fees are exceptionally high, it's important to note the implications for offers made on Magic Eden Bitcoin. If an offer is initiated during such a period, the committed fee rate will be locked in at a higher sat/vB (satoshi per virtual byte) rate.
Subsequently, if the offer is accepted after the fees have decreased, there is no flexibility to alter the initially committed fee rate. As a result, users may experience being charged at a higher rate, which might be reflected as an overpayment on platforms like mempool.space.
To mitigate this potential overpayment issue, the only recourse is to cancel the offer before it gets accepted. However, it's crucial to be aware that if you decide to cancel the offer during a high fee period, the cancellation fees themselves may be elevated.
Future plans
Magic Eden is dedicated to enhancing the accuracy of our fee rate display. We are moving away from the standard fee rate system to ensure a more precise representation of fees associated with larger transactions.
Magic Eden acknowledges the differences in fee rates on Bitcoin and is actively working to provide users with more accurate information. For further clarification or inquiries, please reach out to our support team.