In the latest installment of the Cardano Network Parameters series, we take a closer look at min_utxo_value —a key parameter that affects every Cardano transaction.
This parameter sets the minimum amount of ADA that must be included in a transaction output. It’s not a fee, and you don’t lose the ADA—it’s simply held in the UTxO to ensure the network isn’t clogged with tiny, spammy transactions.
First introduced as a fixed 1 ADA value, it has since become dynamic—adjusting based on transaction complexity. During a 2024 DoS attack, min_utxo_value played a critical role in defending the network, making spam attacks economically unfeasible.
Whether you’re sending ADA, minting NFTs, or building a dApp, min_utxo_value is working in the background to keep Cardano fast, clean, and scalable.
Read more here: lidonation.com