EIP-1559

Overview

EIP-1559 changed Ethereum’s execution fee market by introducing a protocol-calculated Base Fee for each block. Transactions specify a maximum fee per gas and a maximum priority fee, allowing wallets to cap exposure while giving validators an inclusion incentive.

The base fee responds to previous block usage relative to a target. Blocks can temporarily expand above the target up to the protocol limit, absorbing short demand bursts. Sustained high usage raises the next base fees, while under-target usage lowers them.

The execution base fee is burned rather than paid to the validator. The validator can receive the priority fee and other protocol rewards. This separates the minimum resource price from the direct inclusion incentive and changes the relationship between transaction fees and asset supply.

EIP-1559 improves predictability but does not create a fixed price. Sudden Blockspace Demand can raise fees across several blocks, and a transaction with an insufficient maximum fee can remain pending. Wallets still need current node data and an appropriate urgency policy.

The proposal applies to execution gas, not every Ethereum resource forever. EIP-4844 created a separate fee market for blob data. Applications should identify whether they are pricing execution, data availability, or another resource and should not label every network fee as an EIP-1559 base fee.

Integrations should store the submitted maximum fee, priority fee, observed base fee, gas used, and effective gas price. These fields explain why a transaction cost less than its maximum, remained pending, or became invalid for inclusion after the base fee increased.