Base Fee

The base fee is a component of Ethereum's transaction fee mechanism, introduced with the London Hard Fork (EIP-1559). It represents the minimum amount of gas required to include a transaction in a block and adjusts dynamically based on network congestion. The base fee is burned (removed from circulation), aiming to stabilize transaction fees and reduce volatility.

For web3 developers, understanding the base fee is crucial for estimating transaction costs and optimizing gas usage within their applications. Incorporating mechanisms to handle fluctuating base fees can enhance user experience by ensuring timely and cost-effective transaction processing.

If you’re trying to estimate costs and optimize gas usage, why not check out our transaction simulator here →