What Is ‘Gas Price’ and How Is It Calculated in Ethereum’s Fee Structure?
Gas Price is the amount of Ether a user is willing to pay for each unit of computational effort, known as Gas, to execute a transaction. Before EIP-1559, the fee was simply Gas Used multiplied by the Gas Price.
Post-EIP-1559, the fee is calculated as a Base Fee (burned) plus a Priority Fee (tip to the miner). The Gas Price is denominated in Gwei (1 billionth of an Ether).
