Determining the Base Fee
Base fee: This refers to the minimum amount of gas required to include a transaction on the Ethereum blockchain.
Base Fee is determined by the Ethereum network rather than being set by end-users looking to transact or miners seeking to validate transactions. The
Base Fee targets 50% full blocks and is based upon the contents of the most recent confirmed block. Depending on how full that new block is, the
Base Fee is automatically increased or decreased.
- If the last block was exactly 50% full, the
Base Feewill remain unchanged.
- If the last block was 100% full, the
Base Feewill increase by the maximum 12.5% for the next block.
- If the last block was more than 50% full but less than 100% full, the
Base Feewill increase by less than 12.5%.
- If the last block was 0% full – that is, empty – the Base fee will decrease the maximum 12.5% for the next block.
- If the last block was more than 0% full but less than 50% full, the
Base Feewill decrease by less than 12.5%
This new mechanism is meant to help smooth transaction fees and prevent sudden spikes. The most important thing to keep in mind when it comes to the
Base Fee: it is 100% automatic and readable directly from the network.