EIP-1559
An Ethereum upgrade that introduced a dynamic base fee for transactions, implemented in August 2021.
What is EIP-1559?
EIP-1559 (Ethereum Improvement Proposal 1559), activated on August 5, 2021, reformed Ethereum’s transaction fee market. It introduced a base fee, automatically adjusted based on network demand, which is burned (removed from circulation) to reduce ETH supply inflation. Users can add a priority fee to incentivize faster transaction inclusion. EIP-1559 improves fee predictability, reduces overpayment, and supports Ethereum’s economic sustainability. It also dynamically adjusts the block gas limit to manage congestion, enhancing user experience.
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