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title: Fee market change for ETH 1.0 chain
author: Vitalik Buterin (@vbuterin), Eric Conner (@econoar), Rick Dudley (@AFDudley), Matthew Slipper (@mslipper), Ian Norden (@i-norden)
type: Standards Track
## Simple Summary
A transaction pricing mechanism that includes fixed-per-block network fee that is burned and dynamically expands/contracts block sizes to deal with transient congestion.
There is a base fee per gas in protocol, which can move up or down each block according to a formula which is a function of gas used in parent block and gas target (formerly known as gas limit) of parent block.
The algorithm results in the base fee per gas increasing when blocks are above the gas target, and decreasing when blocks are below the gas target.
The base fee per gas is burned.
Transactions specify both the maximum fee per gas they are willing to pay, as well as the maximum fee per gas they are willing to give to miners to incentivize them to include their transaction (aka: gas premium).
The transaction will always pay the base fee per gas of the block it was included in, and they will pay the premium per gas set in the transaction, as long as the combined amount of the two fees doesn't exceed the transaction's maximum fee per gas.