How Did Ethereum’s EIP-1559 Change the Mechanism for Setting Transaction Fees (Gas Price)?
EIP-1559 introduced a base fee that is dynamically adjusted based on network congestion and is burned (destroyed) rather than paid to the miner/validator. Users can also include an optional "priority fee" (tip) to incentivize faster inclusion.
This change made transaction fees more predictable and reduced the incentive for miners to manipulate transaction ordering for MEV, as the base fee is burned.
Glossar
DID
Attestation ⎊ Decentralized identifiers (DIDs) within cryptocurrency and financial derivatives represent a verifiable digital identity, moving beyond centralized authorities to establish trust through cryptographic proofs.
Setting Transaction Fees
Action ⎊ Setting Transaction Fees is the process by which a user specifies the compensation offered to miners for including a specific transaction in the next confirmed block on the blockchain.
Eip-1559
Upgrade ⎊ EIP-1559, or Ethereum Improvement Proposal 1559, represents a significant upgrade to the Ethereum network's transaction fee mechanism.