What is the Base Fee?
The base fee is the protocol-determined minimum gas price on Ethereum, introduced by EIP-1559. It automatically adjusts based on network demand: when blocks are full, the base fee increases; when blocks are empty, it decreases. The base fee is burned (permanently destroyed), not paid to validators.
How the Base Fee Works
- Each block has a target gas usage (15 million gas) and a maximum (30 million gas)
- If the previous block used more than 15M gas → base fee increases by up to 12.5%
- If the previous block used less than 15M gas → base fee decreases by up to 12.5%
- If the previous block was exactly 15M gas → base fee stays the same
This creates a self-regulating fee market:
- High demand → blocks are full → base fee rises → users reduce activity → demand drops → base fee stabilizes
- Low demand → blocks are empty → base fee falls → activity becomes cheaper → demand increases → base fee stabilizes
Base Fee + Priority Fee = Total Gas Price
Your total gas cost per transaction is:
Base Fee + Priority Fee = Gas Price
| Component | Who Sets It | Where It Goes |
|---|---|---|
| Base fee | Protocol (automatic) | Burned (destroyed) |
| Priority fee | User (tip) | To the validator |
If you want your transaction confirmed quickly, set a higher priority fee. If you’re not in a hurry, a low priority fee is fine — the base fee ensures inclusion eventually.
Why the Base Fee Is Burned
Before EIP-1559, all gas fees went to miners/validators. This meant the protocol constantly issued new ETH as rewards. EIP-1559 changed this:
- The base fee portion is burned (removed from circulation permanently)
- Only the priority fee goes to validators
- During high network activity, more ETH is burned than created → ETH becomes deflationary
How to Predict Gas Costs
Because the base fee adjusts predictably (max 12.5% per block), wallets can accurately estimate gas costs:
- If blocks are 100% full, the base fee will rise ~12.5% next block
- If blocks are 50% full, the base fee stays roughly the same
- If blocks are <50% full, the base fee will drop
This predictability was a major improvement over the pre-EIP-1559 auction model.
Frequently Asked Questions
Q: Can I set the base fee myself? A: No. The base fee is set by the protocol based on the previous block’s gas usage. You can only set the priority fee (tip). Your wallet will automatically estimate the required base fee and suggest an appropriate total gas price.
Q: What happens if I set my max fee below the base fee? A: Your transaction will remain pending until the base fee drops below your max fee, or until it times out. Most wallets set a generous max fee to ensure inclusion.
Q: How much ETH is burned per day? A: It varies with network activity. During high-activity periods (bull markets, NFT mints), thousands of ETH are burned daily. During quiet periods, much less. Track it on ultrasound.money.