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Base fee, priority tip and the ceiling you set

Ethereum splits the fee into a burned base fee and a tip to the validator. What each does, why max fee is a ceiling, and how refunds happen.

Base fee Set by the protocol from block fullness; burned
Priority tip Paid to the block producer; buys inclusion order
Max fee A ceiling. Unused amount is refunded at inclusion

FBT Swap

What you should know

Before 2021, Ethereum fees were a blind auction and everybody overbid. The current model replaces most of that guesswork with a protocol-set base fee that adjusts itself block by block.

Understanding the three numbers in your wallet — base fee, priority fee, max fee — is the difference between consistently overpaying and paying roughly what inclusion is worth.

The base fee adjusts itself

Each block has a target size. If the previous block was fuller than target, the base fee rises; if emptier, it falls. The adjustment is capped per block, so the fee climbs or drops smoothly rather than spiking randomly.

The base fee is burned, not paid to the validator. That removes the incentive for a producer to stuff blocks with their own transactions to inflate it.

The priority tip buys ordering

The tip is the part that actually goes to the block producer, and it is what decides whether you are included now or in a few blocks. On a quiet chain a minimal tip is enough; during congestion the tip is the competitive variable.

A tip far above the going rate buys you position in the next block and nothing else. It does not make the transaction more likely to succeed.

Max fee is a ceiling, not a payment

You set a maximum you are willing to pay per unit of gas. You are charged the base fee at inclusion plus your tip, and the difference is returned. Setting a generous ceiling protects against a rising base fee without costing anything when the fee does not rise.

This is widely misunderstood: a high max fee is not a high payment. A high tip is.

What this looks like on rollups

Rollups follow the same transaction format but their cost is dominated by posting data back to Ethereum. Their execution fee is tiny and their data fee moves with mainnet conditions, so a rollup gets more expensive when mainnet does — just from a much lower base.

Practically: on a rollup the tip rarely matters. On mainnet during congestion it is the only thing that matters.

At a glance

At a glance

Base fee

Set by the protocol from block fullness; burned

Priority tip

Paid to the block producer; buys inclusion order

Max fee

A ceiling. Unused amount is refunded at inclusion

Rollups

Dominated by data-posting cost, which tracks mainnet

FAQ

Frequently asked questions

Clear answers before you decide.

If I set a high max fee, do I pay it?

No. You pay the prevailing base fee plus your tip, and the remainder up to your ceiling is returned. The ceiling only prevents your transaction being stranded if the base fee rises while you wait.

Why is my transaction stuck with a low tip?

Producers order by what they earn. With a tip below the current market your transaction waits until demand falls. You can replace it with the same nonce and a higher tip, which is what wallets call speed-up.

Does a higher fee make a swap succeed?

No. Fees buy inclusion, not outcome. A swap that reverts on a slippage check reverts identically whether you paid a small tip or a large one — and you pay the gas either way.

Risk notice

Crypto assets are volatile and on-chain transactions cannot be reversed. You can lose money, including all of it. Nothing here is financial advice.