How Does Ethereum’s Transition to Proof-of-Stake Affect Transaction Fees?

The transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) fundamentally changed the consensus mechanism but did not directly reduce transaction fees. Fees are still primarily driven by network demand and block space limits.

However, PoS sets the stage for future scalability upgrades (like sharding) that are intended to increase transaction throughput and eventually lower fees.