Advertise on KripZen — put your brand in front of a global crypto audience.Get in touch →

Glossary entry

Base Fee and Priority Fee

Trading & Markets

Base fee and priority fee are the two parts of an Ethereum transaction fee: a protocol-set burned amount plus a tip paid to the validator.

Definition

Base fee and priority fee are the two components of a transaction fee on Ethereum and networks that copied its fee market design. The base fee is set by the protocol itself and adjusts block by block according to how full recent blocks were; it is burned rather than paid to whoever produces the block. The priority fee, commonly called a tip, is chosen by the sender and goes to the validator as an incentive to include the transaction sooner. Wallets normally display an estimate of both plus a maximum the user is willing to pay, and any difference is refunded. Reading these fields in a block explorer explains why two identical transfers can cost very different amounts at different times.

Next

Related terms

More in Trading & Markets