Ethereum transactions pay for computation in gas. Since EIP-1559, most transactions specify a maximum fee and priority fee, while the protocol calculates a base fee that responds to block demand.
The base fee adjusts with block demand
The protocol raises or lowers the base fee according to how full recent blocks were relative to a target. The base fee is burned rather than paid to the validator proposing the block.
The base fee is burned
EIP-1559 removes the base-fee component from circulation rather than paying it to the proposer.
The tip and fee cap affect inclusion
A priority fee can incentivize inclusion. A transaction’s maximum fee caps what it can pay per gas; unused difference between the cap and actual charge is not collected. Congestion and the chosen limit determine whether a transaction waits or fails.
A fee cap is a maximum, not the expected price
The actual charge depends on the base fee, priority fee, gas used, and the transaction’s configured cap.
Sources
Educational information, not investment advice.