Short version: Solana’s on-chain transaction cost is tiny (a few thousand lamports — fractions of a cent). Jupiter Ultra V2 layers additional components on top of that: built-in swap fees, configurable integrator/referral fees, and priority/tip mechanisms (often routed through services like Jito or MEV-protect). Those added line-items — when combined and paid out of the swap (so they effectively reduce the amount a user receives) — can make a single token swap cost orders of magnitude more than the blockchain fee. Critics argue this is opaque and effectively extracts value from ordinary traders; proponents say it’s needed to guarantee execution and fund validators. Below I walk through the mechanics, evidence, and practical fixes.
How Solana fees actually work
- Base fee (on-chain): Solana charges a fixed base fee of 5,000 lamports per signature (0.000005 SOL) plus optional priority fees to bump transaction inclusion. That base fee — even when SOL is $100 — is ~$0.0005. This is the network cost.
- Priority fees / tips: Validators can receive optional priority fees (also called tips) paid to prioritize transactions or to route them through certain validator/MEV pipelines. These can vary and are optional at the protocol level. Tools and aggregators may set them automatically for better success rates.
What Jupiter Ultra V2 adds on top of network fees
- Ultra’s built-in swap fees: Jupiter Ultra charges platform/integrator fees as part of the swap pipeline — for example, Ultra may apply a default fee of 0.05% or 0.1% depending on the token mint, and integrators can opt to add a
referralFee(which Jupiter will split with integrators). These are percent-of-swap fees, not lamport-level blockchain fees. - Referral / integrator cut: Integrators can set referral fees between 50 bps and 255 bps (0.5%–2.55%) in Ultra integrations; Jupiter also takes a cut of integrator fees (e.g., 20% of integrator fee in some cases per docs). These are configurable and can be applied by dapps that integrate Ultra.
- Jito / MEV tips & “gasless” flows: Jupiter’s Ultra mode can add a Jito tip (or interact via MEV-protect or Jito-only mode). Jupiter’s user-facing docs explicitly list Jito tips as a line item when those protection modes are used, and Ultra has a “gasless support” flow where gas is paid from the swap itself. That means the user receives a worse effective price because the aggregator pays validators/tippers out of the trade.
- Net effect: Even though the network cost is minuscule, the combination of platform swap fees, referral/integrator fees, and automatic priority tips means a swap’s effective cost to the user can be significantly higher. Jupiter’s docs and developer pages show that many of these components are configurable and can be applied automatically.
Why critics say this is a problem
- Large share of on-chain fees are now tips routed through MEV/Jito clients. Independent writeups and community commentary show Jito-style tips have become a material portion of fees on Solana; one analysis noted that Jito-generated tips accounted for a large fraction of fees in recent months. When aggregators route or default to such tips, ordinary traders bear that cost.
- Opaque user experience: Many users do not realize that “gasless” or “best execution” flows can mean the aggregator is paying validator tips out of their trade. That reduces the tokens they receive rather than presenting an explicit extra charge at checkout. Community threads and Q&A show users are often surprised by higher-than-expected effective fees.
- Percentage swap fees dwarf network fees for small trades. For tiny swaps, a 0.05%–0.1% swap fee or a 50–255 bps integrator fee is practically the only fee that matters — it can dwarf the protocol-level lamport fee by orders of magnitude. Developers’ docs make the fee bands explicit.
- Users pay for execution guarantees indirectly. Aggregators argue tips/referral fees improve success rates and speed, but when those costs are charged invisibly (deducted from swap output) the trade-off is hidden from users. That creates a perception (and sometimes reality) of value extraction.
Example: where a $0.15-like effective cost can arise
The network base fee is tiny (0.000005 SOL per signature). However, an aggregator may: (1) apply a platform/integrator fee of 0.05%–0.1% of trade size, (2) include a referral fee (50–255 bps) routed to integrators, and (3) add priority/tip amounts to ensure quick execution (Jito tips or priority fees). For a small $10 swap, a 0.5% total fee is $0.05; higher integrator fees or tips pushed into the swap can easily reach or exceed $0.15 in effective cost depending on SOL price and configured tip amounts. The important point: the blockchain’s cost is essentially irrelevant to these user-facing extractions — they’re business/operational fees and tips layered by the aggregator.
Note: I did not find a Jupiter-published single line claiming a fixed $0.15 default tip per swap — but Jupiter’s docs show the mechanisms that allow default tipping and configurable referral fees, and community reports show users observing non-trivial costs when Ultra’s defaults are applied.
Is this a “scam”?
- Not necessarily fraud: Aggregators are adding services (execution optimization, routing through MEV-protect, paying validators/tippers) that have costs. Charging for those services isn’t inherently fraudulent when properly disclosed.
- But customers can be misled: When fees or tips are added invisibly as adjustments to swap output (and the UX doesn’t make the amount and beneficiary clear), users can be misled. That poor transparency is the primary ethical concern.
- Risk vectors: If users consistently pay higher effective fees while believing Solana’s low-fee promise applies to swaps executed by aggregators, this can damage trust, push users away, and invite regulatory attention. It’s also possible that defaulting to large tips sets off bidding dynamics that increase effective costs over time.
Practical recommendations (for users, Jupiter, and the ecosystem)
For users:
- Check the fee breakdown before confirming a swap. Look for explicit lines showing swap/platform/referral fee and any priority tip. If using a wallet integration or dApp, watch for a summary that shows paid fees.
- For small trades, consider on-chain DEXes or simple routes where integrator/referral fees are absent — the base on-chain cost is tiny. Compare the net tokens received, not just quoted price.
- SET A LOWER FEE MANUALLY!
For Jupiter / aggregators:
- Display an explicit, itemized fee breakdown (network fee, platform fee, referral cut, tip, who receives it). Make default tip sizes transparent and allow opt-out.
- Consider caps or clearer UX thresholds for when gasless/tip-boost flows are applied — for micro-swaps, avoid automatic tips unless the user explicitly agrees.
For the ecosystem:
- Encourage standards for fee transparency across wallets, aggregators, and DEX UIs. The web3 UX should minimize surprises around fees.
Conclusion
Solana’s low base fees remain true at the protocol level; however, the effective cost to users trading via aggregators like Jupiter Ultra V2 can be materially higher because of platform swap fees, integrator/referral cuts, and optional priority tips routed to validators or services like Jito. Whether that is a “scam” depends on disclosure and intent — but the current combination of opaque defaults and automatic tips is a clear UX and fairness problem that the ecosystem should address.
“Someone’s gotta explain this to me, I feel like an idiot” (Reddit, r/solana) — user complains: “in addition to 2% fees … you will pay priority and tips on every transaction.”
https://www.reddit.com/r/solana/comments/1ldn29i/someones_gotta_explain_this_to_me_i_feel_like_an/
“Ultra Swap Saved Fees” (Reddit, r/jupiterexchange) — users discussing how much they’ve “saved” via Ultra.
https://www.reddit.com/r/jupiterexchange/comments/1m811en/ultra_swap_saved_fees/
“Understanding the transaction fees on a Jupiter swap” (Reddit, r/solana) — breakdown of base lamport fees vs declared compute/priority fees.
https://www.reddit.com/r/solana/comments/1bjh2g5/understanding_the_transaction_fees_on_a_jupiter/
“Fees” (Reddit, r/jupiterexchange) — a user claims insane fee deductions: buying $500 SOL turns into $450–$460.
https://www.reddit.com/r/jupiterexchange/comments/1iahbvr/fees/
“Jupiter fees + slippage” (Reddit, r/solana) — comment that using “fast/turbo/ultra” modes increases fees (up to a cap) for speed.
https://www.reddit.com/r/solana/comments/1gg3hhf/jupiter_fees_slippage/
“Tipping via Jito Bundles is live” (Twitter/X) — Jupiter’s official handle tweeting that tipping via Jito bundles is now live (admission to the scam)
https://x.com/JupiterExchange/status/1784234743711859049