Fee Market
blockchain
economics
A fee market is the competition for block space where users bid transaction fees for faster inclusion.
1
concept
When transaction demand exceeds available block space, fees rise as users outbid each other for priority. Designs vary by chain, including first-price auctions, EIP-1559-style base fees, or high-capacity models that keep fee pressure low.
2
considerations
Fee markets affect UX, miner/validator revenue, and security budget. Predictable fees enable commerce; volatile fees push usage to off-peak times or alternative chains.
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Related terms
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All terms and definitions may update as the Cryptionary improves.
