> ## Documentation Index
> Fetch the complete documentation index at: https://docs.algen.network/llms.txt
> Use this file to discover all available pages before exploring further.

> Documentation about network fees on Algen. This page covers details of the two-component cost system involving L2 execution fees and L1 security fees, and offers insights on fee variations and cost-saving strategies enabled by ASDO and Mesher.

# Network Fees

## Fees

### How do network fees on Algen work?

Every Algen transaction consists of two costs: an **L2 (execution) fee** and an **L1 (security) fee**.

* **L2 Execution Fee:** The cost to execute your transaction on the Algen L2 network. Thanks to Algen's high-performance architecture, this fee is typically negligible.
* **L1 Security Fee:** The estimated cost to publish the transaction data to the L1 network. In traditional L2s, this is often the most expensive component.

### **Optimization via Mesher & ASDO**

Algen significantly reduces these costs compared to standard L2s through its unique technologies:

* **Mesher:** Utilizes batch transaction compression and a unified settlement layer to reduce the data footprint on L1, lowering gas fees by **50-80%**.
* **ASDO:** The AI-driven engine monitors network congestion in real-time, dynamically adjusting resource allocation to stabilize fees even during peak usage.

While the L1 fee component can still vary depending on global network traffic, Algen's architecture works to minimize this impact. If the timing of your transaction is flexible, you can further optimize costs by submitting transactions during periods of lower network activity.

Similarly, the L2 fee is subject to local network demand, but Algen's high throughput ensures it remains stable and low-cost for the vast majority of use cases.