I have this below transaction where allocation fee and baker fee is mentioned.

  1. Can anybody help me understand

    • Storage Fee
    • Allocation Fee
  2. In which scenario these are applied ?

  3. These fees is going to affect the Sender account or target account like

  4. Will the sender account balance be like:

Sender Account Balance = Sender Account Balance - (Amount sent + storage fee + Allocation fee + Baker fee)

    "type": "transaction",
    "id": 11817188,
    "level": 489537,
    "timestamp": "2019-06-21T09:11:37Z",
    "hash": "onwGMCNu3BKsJ4TDXur25Q7FAkdWpskgaDs5RExua7V6Qo1ZWFL",
    "counter": 1505040,
    "sender": {
        "address": "tz1RVjS45cLxJHbQNQfvEf9u8ASkv5CC4hmp"
    "gasLimit": 10300,
    "gasUsed": 10200,
    "storageLimit": 277,
    "storageUsed": 0,
    "bakerFee": 1284,
    "storageFee": 0,
    "allocationFee": 257000,
    "target": {
        "address": "tz1Nm5kshYha1PaUqaDR4T9HnciyfiBM7rd6"
    "amount": 300000,
    "status": "applied",
    "hasInternals": false
  • What's the source of the JSON in the end of your question? The node RPC? – arvidj Feb 18 '20 at 8:17
  1. The storage and allocations costs you mentions should rather be referred to as burn as they are not sent to anyone: they are only removed from the account of the sender. They are applied when the size of the blockchain increases. Fees, such as the baker fee, are payed to someone, in this case the baker.

  2. When the size of the context of the blockchain increases due to a transaction, the sender must pay a burn. Notably, when the storage of a contract increases (storage burn) or when a new contract is put on the chain (allocation burn) but also when the public key corresponding to a public key hash is revealed. This latter operation, called a revelation, is necessary in order for other participants to verify operations signed by that public key. The revelation has a fixed cost of 0.257 tz.

  3. Yes, that is correct. Note that the storage burn in your case is 0 and that the allocation is a one-time cost for a specific recipient.

  • i am slightly confused on the 1 and 3rd point of yours like in the first point you mentioned the allocation burn are removed from account of sender and in 3rd point its mentioned allocation cost is one time for specific recipient . could you explain – user3759202 Feb 18 '20 at 10:19
  • 2
    The allocation is a one time burn, payed by the sender, for the first transaction received by an account. – arvidj Feb 18 '20 at 10:58

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