## EIP-1559: How Ethereum Revolutionized the Fee System

Before August 2021, those operating on Ethereum faced a classic problem: gas fees were unpredictable and often explosive. The protocol used a simple auction mechanism, where each user offered a different gas price, competing for the inclusion of their transactions in the blocks. The result? Network congestion caused chaos in prices.

EIP-1559 arrived as a response to this volatility. Launched during the London hard fork, this update completely restructured the Ethereum network's fee pricing system, introducing a much more stable and predictable model.

### The EIP-1559 Mechanism: Dynamic Base Fee

Instead of the chaotic previous system, EIP-1559 implemented a **base fee** determined by the protocol. This fee is smart: it rises when the network gets congested and falls when the demand cools down. Thus, the gas price stops being a money grab and genuinely reflects the state of the network.

This adaptability brought two immediate impacts: predictability for those using the network and a reduction in volatility in day-to-day operations.

### Fee Burning: The Deflationary Element

The most revolutionary aspect of EIP-1559 is that the base fee does not go to the validators. It is **permanently destroyed** (burned), leaving circulation. This means that a portion of ETH is systematically removed from the total supply with each transaction, creating a native deflationary mechanism in the protocol.

### Priority Fee: When You Need Speed

Even with the base fee, Ethereum allows users to add an optional **tip** ( priority fee ). This extra amount goes directly to the validator that processes the transaction. Want your operation to be fast when the network is congested? Increase the tip. The choice is in your hands.

### Practical Result

EIP-1559 has transformed the Ethereum user experience. Fees have become more predictable, the supply of ETH has started to be reduced in a structured way, and validators continue to be rewarded for their work. It's not perfect for times of hyper-congestion, but it is incomparably better than the previous chaos.