GWEI

EIP-1559 Explained

The London upgrade changed how gas fees work on Ethereum

Before vs After EIP-1559

Before (Legacy)

You bid a single gas price. Highest bidders got in first. Unpredictable and led to overpaying.

After (EIP-1559)

Two-part fee system: a base fee that adjusts automatically, plus an optional tip. More predictable!

Base Fee (Gets Burned!)

The base fee is the minimum price to include a transaction in a block. This fee is burned (destroyed forever), making ETH more scarce over time.

  • •Adjusts automatically based on network demand
  • •Goes up when blocks are full, down when empty
  • •Can only change ±12.5% per block

Priority Fee (Tip)

The priority fee is a tip that goes directly to validators. Higher tips = faster inclusion when blocks are competitive.

Pro tip: When gas is low, you can use a minimal priority fee (1-2 gwei). When busy, increase it to jump the queue.

Max Fee

When sending a transaction, you set a max fee - the absolute maximum you're willing to pay. You only pay what's needed:

Actual fee = base fee + priority fee

(never more than your max fee)

Key Takeaway

EIP-1559 made gas fees more predictable. The base fee adjusts automatically, and you add a small tip for validators. The base fee is burned, which is good for ETH holders!