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What Is the Base Fee? How EIP-1559 Changed Ethereum Fees
The base fee is the per-gas price that the Ethereum protocol sets for each block based on recent demand, introduced by EIP-1559, and which is burned rather than paid to validators.
Key takeaways
- The base fee is set by the protocol from the blocks before it, not bid by users.
- It is burned, which removes that ETH from circulation.
- Users add an optional priority fee, or tip, to encourage inclusion.
- It replaced the older single-price auction, making fees more predictable.
Before EIP-1559
Early Ethereum used a simple auction: every sender bid a gas price and miners took the highest bids. That made fees hard to predict. Users overpaid to be safe or got stuck when a rush of activity pushed prices above their bid.
What the base fee does
EIP-1559 split the fee into two parts. The base fee is calculated by the protocol: ethereum.org explains that it is determined by the blocks before, not the current block. When recent blocks are fuller than a target, the base fee rises for the next block, and when they are emptier it falls. Every transaction in a block pays that same base fee per unit of gas.
Burned, not paid out
The base fee is burned when the block is created, which means that ETH leaves circulation permanently. Validators do not receive it. The aim of burning is to stop validators from manipulating the base fee for profit, and it also reduces ETH's net issuance when activity is high.
The tip
The priority fee, or tip, is the part that goes to the validator. ethereum.org says it incentivises validators to include more transactions. Users add a tip on top of the base fee, and during busy moments a higher tip makes inclusion more likely. Wallets suggest values for both, and many users just accept the default.
What it means for you
Because the base fee is predictable from block to block, wallets can quote a reasonably accurate fee and you should rarely need to guess. When the fee is high, waiting is often cheaper than paying more. Remember that the base fee is dynamic, so a transaction that sits unconfirmed while the base fee rises above your maximum will wait until it falls again.
Example
The base fee for a block is 30 gwei and you set a 2 gwei tip. You pay 32 gwei per unit of gas. The 30 gwei portion is burned, and the 2 gwei tip goes to the validator.
Put it into practice
Check the fee before you confirm
Ethereum fees move with demand. Check the fee shown in Scrypt Wallet before you confirm, and consider waiting if the network is busy and your transfer is not urgent.
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Last reviewed 2026-10-02 by the Scrypt Wallet team. The factual claims on this page, and where each comes from:
- The base fee is calculated from the blocks before it, not the current block. [1]
- The base fee is burned when the block is created. [1]
- The priority fee (tip) incentivises validators to include more transactions. [1]
- EIP-1559 introduced a base fee and a priority fee in place of a single-price auction. [2]
Sources
- Gas and fees · ethereum.org · secondary source
- EIP-1559: Fee market change for ETH 1.0 chain · Ethereum EIPs · primary source
Primary sources are protocol papers, specifications, source code or a project's own documentation; secondary sources are wikis and explainers. We checked each claim against the source text on the review date. Found an error? Tell us and we will correct it.
Frequently asked questions
Does EIP-1559 make fees lower?
Not necessarily. It makes them more predictable. Fees still rise when demand is high.
Where does the burned ETH go?
It is removed from circulation permanently.
Do I have to pay a tip?
A tip is optional, but a higher tip makes validators more likely to include your transaction quickly.
Written by the Scrypt Wallet team · Updated 2026-10-02. General education, not financial, tax or legal advice.