Version 29.1 lowers fees from 1 sat/vB to 0.1 sat/vB, making transactions cheaper while preserving network security
The Bitcoin Core 29.1 update, released on September 4, has introduced one of the most impactful fee changes in years. The software now sets the default minimum relay fee at 0.1 satoshis per virtual byte (sat/vB), a sharp reduction from the previous standard of 1 sat/vB. This 90% decrease aims to make transactions more affordable while still maintaining protection against denial-of-service (DoS) attacks.
Transaction fees in Bitcoin are determined by the transaction’s size in bytes multiplied by the fee rate in satoshis. Until now, transactions under 1 sat/vB were ignored by most nodes. The new update lowers this threshold, reflecting how Bitcoin’s price growth has made the old minimum unnecessarily high.
“The previous fee level was set nearly a decade ago when Bitcoin’s price was far lower,” explained Bitcoin Core developer Gloria Zhao. “With today’s valuations, a lower minimum still provides adequate DoS protection while allowing cheaper transactions to flow through the network.”
Adoption across the network
Currently, over 72% of Bitcoin nodes run Bitcoin Core software, though only a small fraction have updated to version 29.1. According to BitRef data, just 571 nodes (around 2.3%) are running the latest release. Widespread adoption is expected to roll out gradually as operators upgrade.
Notably, Bitcoin Knots, an alternative version of the software, chose not to inherit the new default. Instead, Knots raised its own relay fee setting to maintain the previous value, emphasizing user configurability.
Community reactions
Bitcoin network data service Mempool.Space also advocated for lower fees, advising users not to overpay for the space that they use on the blockchain. “0.1 sat/vB is the new one sat/vB,” it wrote in a mid-July X .
Bitcoin data service Mempool.Space also endorsed the shift, writing in July: “0.1 sat/vB is the new 1 sat/vB — users should stop overpaying for block space.”
By reducing the default minimum relay fee, Bitcoin Core has taken a significant step toward cheaper, more efficient transactions. While full adoption will take time, the update marks an important milestone in keeping the network both accessible and secure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
