What is Gas Fee?
The gas fee is the ETH paid to include a transaction in a block: gas used × gas price. After EIP-1559, gas price = base fee (burned) + priority fee (tip to validator). Post-EIP-4844 (March 2024), L2 fees collapsed by 10-100×.
How it works
The gas fee is the ETH paid to include a transaction in a block: gas used × gas price. After EIP-1559, gas price = base fee (burned) + priority fee (tip to validator). Post-EIP-4844 (March 2024), L2 fees collapsed by 10-100×.
For deeper protocol-level mechanics, see the related glossary terms below or the linked DeFi Intel topic deep-dive.
Why it matters
Gas fees gate participation. EIP-1559 made fees predictable; EIP-4844 made L2 fees almost free. The economic gating mechanism for Ethereum block space.
Real-world examples
Pre-EIP-1559: first-price auctions causing fee volatility. Post-EIP-1559 (Aug 2021): base fee + tip. Post-EIP-4844 (Mar 2024): L2 fees collapsed 10-100x.
Related terms
Go deeper
Read the full DeFi Intel topic deep-dive or browse the complete crypto glossary.
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