What Is the Concept of “Dynamic Fee Adjustment” in a Blockchain?

Dynamic fee adjustment is a protocol mechanism that automatically adjusts the base transaction fee based on the current level of network congestion. Instead of relying solely on miners to prioritize transactions, the protocol provides a transparent and predictable fee structure.

This system aims to prevent excessive fee volatility and ensure that the network remains usable even during periods of high demand by giving users a clearer idea of the necessary fee.