Chapter · Master Ethereum
EIP-1559 and fee burning
In 2021 an upgrade called EIP-1559 changed how gas fees work. Before it, users had to guess a bid and often overpaid. Now each block has a base fee that the network sets automatically based on how busy it is. If blocks are full, the base fee rises. If they are empty, it falls. The twist is that this base fee is burned, meaning it is destroyed rather than paid to a validator. You can also add a small tip to reward the validator.
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What this lesson covers
Predictable, not cheap
EIP-1559 made fees easier to estimate, but it did not make Ethereum cheap. When many people want in, the base fee still climbs and transactions still cost real money. The bigger fix for high fees comes from Layer 2 networks, which we look at next.
What you get asked
What did EIP-1559 introduce?
EIP-1559 added an automatic base fee that moves with demand, plus the rule that this base fee is burned instead of paid out.
Under EIP-1559, the base fee for each block is ___, meaning it is destroyed rather than paid out.
Burning the base fee removes that ETH from supply. When the network is very busy, more ETH is burned than issued, which can shrink the total supply.
Why does burning the base fee matter for ETH supply?
Burned ETH is gone for good. When burning outpaces new issuance during busy periods, supply can even fall. It affects supply, but it never guarantees price.
Match each fee part to what it does
Your total fee is the burned base fee plus an optional tip. The base fee rises and falls with how busy the network is, making costs more predictable.
The rest of this chapter
Learn how Ethereum works as a programmable blockchain, from smart contracts and gas to staking, Layer 2s, and DeFi.