What Is the Relationship between the Block Size Debate and Transaction Fees?

The block size debate centers on whether the block size limit should be increased. Proponents of increasing the limit argue that it would increase block space supply, reducing competition and thereby lowering transaction fees.

Opponents argue that a larger block size could centralize mining (due to higher resource requirements) and that the fee market is necessary for long-term network security as the block subsidy diminishes. The current fixed limit creates the scarcity that drives the competitive fee market.