Skip to main content

How Do Different Consensus Mechanisms (PoW Vs. PoS) Influence Transaction Fee Volatility?

In Proof-of-Work (PoW), miners are heavily incentivized by fees to cover high operational costs, potentially leading to more aggressive fee bidding and volatility during congestion. In Proof-of-Stake (PoS), validators have lower operational costs, and the fee structure is often designed to be more predictable, as seen with Ethereum's EIP-1559.

PoS networks often have faster block times, which can also help clear the transaction backlog quicker.

How Can a Trader Use a “Good-Til-Canceled” (GTC) Order to Manage a Non-Aggressive Limit Price?
What Role Do Gas Fees Play in Transaction Ordering on Proof-of-Work/proof-of-Stake Blockchains?
What Is a Priority Gas Auction (PGA)?
What Is the Concept of ‘EIP-1559’ regarding Ethereum Gas Fees?