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How Does This Adjustment Mechanism Prevent Fee Spikes?

It prevents spikes by capping the fee change at 12.5% per block and allowing the block size to temporarily double to absorb demand surges.
Greeks.Live18.11.25

How Does This Adjustment Mechanism Prevent Fee Spikes?

The base fee adjustment mechanism prevents extreme fee spikes by ensuring that the fee only changes gradually (max 12.5% per block) and by allowing the block size to temporarily double during periods of high demand. This 'elastic' block size absorbs demand surges, preventing a rapid, competitive bidding war that characterized the old auction system.

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