How Does EIP-1559 Affect Gas Fee Predictability?
EIP-1559 introduced a mechanism where a network-determined 'base fee' is algorithmically adjusted based on network congestion and is burned, not paid to miners. This creates a more predictable fee market.
Users also include a 'priority fee' to incentivize miners. By making the base fee transparent and predictable, it reduces the volatility and guesswork associated with setting the total gas price.
Glossar
Gas Fee
Mechanism ⎊ Gas fees represent the computational cost required to execute a transaction or smart contract on a blockchain network, particularly Ethereum and its Layer-2 solutions, functioning as a deterrent against denial-of-service attacks and a reward for network validators.
Base Fee
Cost ⎊ The base fee represents the minimum amount required to include a transaction in a block on certain blockchain networks, notably Ethereum following the EIP-1559 upgrade.
Eip-1559
Upgrade ⎊ EIP-1559, or Ethereum Improvement Proposal 1559, represents a significant upgrade to the Ethereum network's transaction fee mechanism.