EIP-1559
Also known as: Ethereum Fee Reform, Gas Fee Burn Model, EIP-1559 Upgrade
An Ethereum upgrade that introduced a base fee mechanism and ETH burning to improve transaction efficiency and predictability.
EIP-1559 is a major Ethereum improvement proposal implemented in August 2021 (London Hard Fork) that changed how transaction fees work. It replaced the auction-style gas fee model with a dynamic 'base fee' that adjusts based on network demand, plus an optional tip (priority fee) to incentivize faster inclusion. Critically, the base fee is burned, reducing the total ETH supply over time. EIP-1559 aims to improve user experience, fee estimation, and network security, while introducing a deflationary pressure on ETH. It’s a foundational component of Ethereum’s economic model post-Merge.