EIP-1559 Fee Breakdown Calculator
Under EIP-1559, transaction fees are split into a base fee (burned) and a priority fee (paid to validators). Calculate how your transaction fee is allocated.
How It Works
The base fee is determined by network congestion: it increases by up to 12.5% when blocks are full (over 15 million gas), and decreases by 12.5% when blocks are empty. The base fee is burned, while the priority fee goes to validators.
Fee Breakdown
How to Use: Enter your max transaction fee and priority fee. The calculator shows how fees are split between burned base fee, validator tip, and refund.
Ethereum EIP-1559 didn’t just tweak how transaction fees work-it rewrote the economic rules of Ethereum. Before EIP-1559, users were stuck in a bidding war. You’d guess how much to pay for your transaction to get mined fast, often overpaying by 50% or more. Sometimes, your transaction would just sit there, stuck, because you underestimated the fee. That chaos ended in August 2021, when the London hard fork brought EIP-1559 live. Now, fees are predictable. And for the first time in Ethereum’s history, a portion of every transaction fee is permanently destroyed-burned-reducing the total supply of ETH.
How EIP-1559 Changed Ethereum’s Fee System
Before EIP-1559, Ethereum used a first-price auction for gas fees. If you wanted your transaction processed quickly, you had to outbid others. Wallets tried to estimate the right fee using past blocks, but it was like guessing the price of gas during a road trip with no signs. You’d end up paying too much, or your transaction would fail.
EIP-1559 replaced that with two parts: a base fee and a priority fee (also called a tip). The base fee is set by the network itself. It goes up when blocks are full and drops when they’re empty. This isn’t random-it follows a strict algorithm. If a block uses more than 15 million gas, the base fee rises by up to 12.5%. If it uses less, the base fee falls by the same amount. This keeps the network stable.
The base fee doesn’t go to miners. It gets burned. That means it’s removed from circulation forever. Only the priority fee-the extra amount you add to incentivize miners-goes to them. So if you set a max fee of 200 gwei and a priority fee of 10 gwei, and the base fee is 140 gwei, you pay 150 gwei total: 140 gwei burned, 10 gwei to the miner, and 50 gwei refunded to you.
What Does Fee Burning Actually Do?
Burning the base fee turns Ethereum from a neutral currency into something with deflationary pressure. Every time someone sends ETH, a chunk of it disappears. That’s not just a technical detail-it’s a monetary policy shift.
Since August 2021, over 2.5 million ETH have been burned, worth more than $8 billion at the time. That’s about 0.23% of the total ETH supply destroyed each year under normal usage. During peak activity-like NFT drops or DeFi surges-burn rates spiked. In 2022, more than 1,500 ETH were burned daily. That’s more than the daily issuance of new ETH to stakers. In those moments, Ethereum became deflationary: more ETH was destroyed than created.
This matters because ETH is no longer just a currency. It’s becoming a scarce asset. As Ethereum usage grows-especially with Layer 2 solutions like Arbitrum and Optimism gaining traction-the base fee burns more ETH. If network demand stays high, ETH supply could shrink over time, making each coin potentially more valuable.
Why Miners Don’t Like It (But Users Do)
Miners used to earn all transaction fees. Now, they only get the tip. That’s a big change. For miners, the base fee burn means less predictable income. During low-traffic periods, tips are small. Some worry this could reduce security if miners lose motivation. But Ethereum switched to proof-of-stake in September 2022. Miners don’t exist anymore. Validators now earn rewards from staking and tips. So the impact on security is minimal.
For users? It’s a night-and-day difference. Wallets like MetaMask now auto-set your max fee based on the last block’s base fee. You don’t need to guess anymore. Transaction failures dropped by 18% in the six months after EIP-1559 launched. Support tickets about gas fees fell by 37%. People stopped overpaying. They stopped waiting hours for transactions to go through.
Even DeFi apps benefited. Uniswap reported a 29% drop in failed swaps due to bad gas estimates. That’s not just convenience-it’s reliability. When you’re trading $10,000 in tokens, you can’t afford a stuck transaction.
How EIP-1559 Compares to Other Blockchains
Most blockchains still use the old auction model. Bitcoin? Still auction-based. Solana? Fee is fixed at 0.000005 SOL per transaction-no burning. Binance Chain? Charges fees but doesn’t burn them. Ethereum is the only major chain that burns a portion of every transaction fee.
Some competitors noticed. Polygon adopted a version called EIP-1559++, which burns part of the fee and sends the rest to a treasury. Arbitrum and Optimism, Ethereum’s Layer 2s, also burn fees on their chains. They’re copying Ethereum’s model because it works. Users expect predictable fees. Investors like deflationary pressure.
Even regulators took notice. The IRS ruled in 2023 that burned ETH is not a taxable event. You don’t owe capital gains tax when ETH disappears into the ether. That’s huge. It means the burn mechanism isn’t seen as a sale or transfer-it’s just destruction. Legally, it’s neutral.
What Happens During Network Congestion?
One criticism of EIP-1559 is that it can’t handle extreme spikes fast enough. The base fee can only rise 12.5% per block. So if demand suddenly doubles, it takes about 20 blocks (5 minutes) for fees to go up 10x, and 40 blocks (10 minutes) to go up 100x. That’s slower than the old system, where fees could spike instantly.
During those moments, users might still overpay. But it’s not chaos. The system doesn’t break. It just takes a little longer to catch up. And because the base fee is always visible, users know what’s happening. Wallets show you the current base fee and suggest a max fee. You can still choose to pay more if you’re in a hurry.
Compare that to the old system: you had no idea what the fee would be. Now, you see the trend. You can wait. You can plan. That’s control.
What’s Next for EIP-1559?
EIP-1559 isn’t done evolving. The next big change is EIP-4844, also called Proto-Danksharding. It introduces a new type of transaction called “blob transactions,” used mostly by Layer 2s. These will have their own fee market, separate from regular ETH transfers. The base fee for blobs will also be burned.
This means Ethereum’s burn rate could increase even more. As more activity moves to Layer 2s, the mainnet still earns burn revenue from the fees those Layer 2s pay to settle on Ethereum. So even if you’re using Arbitrum, you’re still helping burn ETH on the main chain.
Some researchers are looking at tweaking the base fee adjustment algorithm. Maybe make it faster during spikes. Maybe add a minimum burn floor. But the core idea-burning the base fee-is now locked in. It’s not going away.
Why This Matters for ETH as an Asset
Ethereum isn’t just a platform. It’s a network with its own economy. EIP-1559 turned ETH into something closer to a commodity with a controlled supply. Bitcoin has a fixed cap. Ethereum has a dynamic cap that shrinks under demand.
Delphi Digital estimates that under current usage, ETH could lose 0.15% to 0.30% of its supply annually to burns. That’s not huge-but it’s consistent. And as more people use DeFi, NFTs, and tokenized assets on Ethereum, that number could grow.
Investors are starting to price that in. ETH’s value isn’t just about utility anymore. It’s about scarcity. And EIP-1559 is the engine that makes that scarcity real.
What You Need to Know as a User
You don’t need to understand the math. But you should know this:
- Wallets now auto-set your max fee. You don’t need to guess.
- If your transaction fails, it’s probably because your max fee was too low-not because you didn’t pay enough.
- The base fee is burned. That’s good for ETH’s long-term value.
- You’ll always get a refund if you overpaid. The system is fair.
- Fee estimates are now reliable. You can plan your transactions.
No more stress. No more overpaying. Just clean, predictable, and deflationary transactions.
Is EIP-1559 still active after the Ethereum Merge?
Yes. EIP-1559 was fully active before the Merge in September 2022 and continues unchanged. The Merge replaced miners with validators, but the fee burning mechanism stayed the same. Validators now earn the priority fee (tip), while the base fee is still burned. The economic structure of EIP-1559 is independent of the consensus mechanism.
Does burning ETH make it more valuable?
Burning ETH reduces its total supply, which can increase scarcity. If demand stays steady or grows while supply shrinks, the price tends to rise. This isn’t guaranteed-market sentiment, regulation, and adoption also matter. But EIP-1559 created a built-in deflationary force that didn’t exist before. ETH is now the only major cryptocurrency where supply can decrease over time based on usage.
Can I see how much ETH has been burned?
Yes. Websites like Etherscan and Ultrasound.money track real-time ETH burns. Ultrasound.money even shows the total supply change since EIP-1559 launched. As of November 2025, over 5.2 million ETH have been burned since August 2021. That’s more than 3% of the original supply.
Do I pay more under EIP-1559 than before?
Not necessarily. Under the old system, users often overpaid by 30-50% just to be safe. With EIP-1559, you pay the exact amount needed plus a small tip. Most users now pay less on average. During low congestion, fees are lower. During high congestion, fees rise-but predictably. You’re not gambling anymore.
What happens if I set my max fee too low?
If your max fee is below the current base fee, your transaction won’t be processed. It’ll stay pending until you resend it with a higher max fee. Wallets now warn you if your fee is too low, but if you manually set it, you might still make this mistake. Always check the suggested max fee before sending.
Adrian Bailey
November 13 2025so i just checked ultrasound.money and wow, over 5.2 million ETH burned since 2021. that’s like 3% of the whole supply gone. i didn’t even realize how much was disappearing every day. it’s wild to think that every time someone swaps tokens or mints an NFT, a little bit of ETH just vanishes into thin air. no one gets it, no one profits from it-it’s just gone. kind of poetic, honestly. like digital incense burning for the network.
and the best part? you don’t even notice it. your wallet just says ‘fee: 12 gwei’ and you’re on your way. no more guessing, no more panic. i used to refresh etherscan every 3 minutes waiting for my tx to go through. now? i send it, make coffee, come back, done. it’s like upgrading from dial-up to fiber.
miners used to scream about losing fees, but now we’ve got validators who just stake and chill. the whole thing feels more stable, less chaotic. even my grandma understands gas now. she asked me last week why her nft mint didn’t go through-i told her ‘base fee too high’ and she got it. that’s a win.
and the burn rate spikes during big events? remember when the punk rockers dropped? i think 12k ETH vanished in 20 minutes. that’s more than the daily issuance. deflationary as hell. bitcoin’s capped at 21 million. ethereum’s cap is shrinking. and it’s not even a hard cap-it’s a living, breathing, usage-driven contract. mind blown.
also, the fact that the IRS says burning isn’t a taxable event? genius. they didn’t classify it as a sale or transfer. just… poof. gone. no tax bill. that’s huge for adoption. people don’t want to pay taxes on something that disappears. smart move.
and layer 2s? they’re burning too. every arbitrum transaction, every optimism swap-it all feeds back into the mainnet burn. so even if you’re not on ethereum directly, you’re still helping shrink the supply. it’s like a network effect for scarcity. i love it.
next stop: proto-danksharding. blob fees will burn too. this thing’s only getting stronger. eth isn’t just a platform anymore. it’s a deflationary asset. and honestly? i think we’re just getting started.
Johanna Lesmayoux lamare
November 13 2025finally, fees that make sense.
Kristin LeGard
November 15 2025you people act like burning ETH is some kind of miracle. it’s just accounting. the real problem is that ethereum is still too slow, too expensive for normal people. layer 2s are just bandaids. the base chain is a glorified lottery system with extra steps. if you think this is ‘deflationary magic,’ you’re not looking at the big picture. the US dollar is still the reserve currency. crypto is a sideshow. and this burn thing? it’s just marketing fluff to make retail investors feel smart.
Rachel Everson
November 15 2025hey, just wanted to say-this post is actually one of the clearest explanations of EIP-1559 i’ve ever read. i’ve been in crypto since 2017 and even i used to get confused by gas fees. now i finally get why my txs don’t fail anymore.
the burn mechanism is genius. it’s not just technical-it’s economic. you’re creating scarcity without having to cap supply like bitcoin. that’s huge. it means eth can grow with usage instead of being limited by an arbitrary number.
and the refund system? so fair. i used to pay $50 in gas for a $10 swap just to be safe. now i pay $1.50 and get $48.50 back. that’s not just convenience-it’s justice.
also, i love how wallets now auto-suggest fees. no more guessing. no more crying over failed txs. even my mom uses meta mask now and she doesn’t even know what ‘gwei’ means. she just clicks ‘send’ and it works.
thank you for writing this. it’s rare to see tech explained this clearly. keep it up.
Arthur Coddington
November 16 2025they told us ‘decentralization’ was the goal. but now we’ve got a system where the base fee is algorithmically controlled by a centralized codebase. who wrote that algorithm? who updates it? who decides the 12.5% cap? it’s not decentralized-it’s a beautifully designed dictatorship. the miners are gone, sure, but now the devs are the new priests. they control the burn. they control the fee. they control the narrative.
and don’t get me started on ‘deflationary pressure.’ that’s just a fancy way of saying ‘we’re making you pay more for nothing.’ the price of eth doesn’t rise because of burns-it rises because people are scared of missing out. and the burn? it’s just a placebo. a digital opiate for the masses.
they say ‘look how much is burned!’ but what about the 100 million new eth issued to validators? that’s not deflation. that’s inflation with a fancy haircut.
this isn’t revolution. it’s rebranding. and we’re all just drinking the kool-aid.
Raymond Day
November 17 2025EVERYONE IS MISSING THE POINT.
THE BURN IS A TRAP.
THEY’RE NOT DESTROYING ETH-THEY’RE DESTROYING YOUR TRUST.
WHY? BECAUSE WHEN ETH GOES UP, THEY SELL. WHEN ETH GOES DOWN, THEY SAY ‘IT’S JUST A TEMPORARY DIP.’
BUT THE BURN? THE BURN MAKES YOU THINK IT’S SCARCE.
IT’S PSYCHOLOGICAL WARFARE.
THE IRS RULING? THAT’S NOT A WIN-THAT’S A COVER-UP. THEY DON’T WANT YOU TO KNOW THAT BURNING ETH IS A WAY TO AVOID CAPITAL GAINS TAXES.
THIS ISN’T TECHNOLOGY. THIS IS A FINANCIAL SCAM WITH A WHITEPAPER.
Kylie Stavinoha
November 17 2025what fascinates me most about EIP-1559 isn’t the economics-it’s the cultural shift. before, ethereum felt like a wild west town where everyone was shouting over each other to get service. now? it’s like walking into a quiet library where the rules are clear, the lights are on, and everyone knows their place.
the burn isn’t just about supply-it’s about dignity. users aren’t being exploited anymore. they’re being respected. that’s rare in tech. in fact, it’s almost unheard of in crypto.
and the fact that layer 2s adopted the same model? that’s not copying. that’s evangelizing. it’s like when the internet moved from ARPANET to HTTP-everyone realized the original design was too broken to fix, so they built better on top.
i think future historians will look back at EIP-1559 as the moment crypto stopped being a casino and started becoming infrastructure.
also, i love that ultrasound.money shows the real-time supply change. it’s like watching a heartbeat. quiet, steady, alive.
Michael Brooks
November 17 2025the burn is real. the math checks out. but let’s not pretend this is some kind of altruistic move. the devs knew this would make eth more attractive as an asset. they knew investors would love the deflationary narrative. they didn’t do it for users-they did it for the market.
but guess what? it still works. even if the motive was selfish, the outcome is better for everyone. that’s the beauty of capitalism. you don’t need pure intentions to create good outcomes.
my wallet auto-sets my max fee now. i haven’t had a failed tx in over a year. i’ve saved hundreds in overpaid gas. that’s real value. doesn’t matter if the devs were calculating or not.
also, the fact that other chains are copying this? that’s the real proof. if it didn’t work, they wouldn’t adopt it. polygon, arbitrum, optimism-they’re all saying ‘yes, this is the way.’
so yeah, maybe it was a financial play. but it’s a damn good one.
Atheeth Akash
November 19 2025in india, we still struggle with high gas fees during peak hours. but i remember when i first tried arbitrum last year-fees were under $0.01. i thought my wallet was broken. then i realized: the base fee is burned on mainnet, but layer 2s handle the traffic. it’s brilliant.
the burn isn’t just about eth-it’s about scaling eth. every transaction on optimism or zksync? it’s still contributing to the mainnet burn. we’re all helping shrink the supply without even knowing it.
and the refund system? genius. no more losing money on failed txs. i used to lose 20% of my swaps because i guessed wrong. now? i just click ‘send’ and move on.
ethereum didn’t just fix gas. it fixed trust.
Joy Whitenburg
November 20 2025okay so i just spent 20 minutes reading this and i’m crying. not because i’m emotional-because i finally get it. i used to think crypto was just gambling. but this? this is like… science. real science. like, you’re not just buying a coin-you’re participating in an economy that’s shrinking on purpose. it’s beautiful.
and the fact that you get your overpayment back? that’s like if you paid $100 for coffee and the barista gave you $90 back because you overpaid. nobody does that. but ethereum does. it’s the only system that actually cares about fairness.
also, i just checked ultrasound.money and saw 5.2 million burned. i cried again. i don’t know why. it just felt… right.
thank you. seriously. thank you for explaining this so well. i’m gonna tell my sister. she thinks crypto is all scams. now she’s gonna see the magic.
Debraj Dutta
November 20 2025as someone from india, i’ve seen the chaos of gas wars firsthand. before eip-1559, i’d sit for hours refreshing etherscan. now, i just set my max fee and walk away. the predictability is revolutionary.
the burn mechanism is elegant. it’s not about making eth ‘scarce’-it’s about aligning incentives. users pay for usage, and that usage removes supply. it’s a self-regulating system. no central authority needed.
and yes, validators earn tips, but they’re not the old miners. they’re stakers. the security model changed, but the fee structure stayed. that’s intentional design.
the fact that other chains are copying this? proof that it works. bitcoin still uses auction. solana has fixed fees. only ethereum made the leap.
this isn’t just a protocol upgrade. it’s a new economic paradigm.