Each Plutus language version (Plutus V1, V2, V3) has its own cost model. When a new Plutus version ships, its cost model is added through a protocol parameter update so wallets and nodes can price scripts written against it deterministically.
Because fees are derived from the executed cost of each operation, wallets can compute the exact fee of a transaction off-chain before submitting it; the on-chain charge will match.
Explore next
- Plutus CoreCardano's on-chain smart-contract runtime. Higher-level languages (Plinth, Aiken) compile down to Plutus Core for execution.View term
- Smart ContractSelf-executing code stored on a blockchain that automatically enforces and executes agreement terms when predefined conditions are met.View term
- CollateralAn ada amount a wallet locks aside when submitting a Plutus transaction, forfeited only if the script's on-chain validation fails.View term
- Untyped Plutus Core (UPLC)The low-level “machine language” that is executed on-chain by Cardano nodes during transaction validation.View term