For an EIP-1559 transaction, the protocol-set base fee is burned, while any effective priority fee—the tip—is paid to the validator that produces the block. Your wallet’s maxFeePerGas is a ceiling, not the final bill: the amount charged depends on the base fee in the block that includes your transaction, the effective tip, and the gas the transaction actually uses.
What “burning” a transaction fee means
In Ethereum’s EIP-1559 fee system, burning means the protocol destroys the ETH collected as the base fee rather than transferring it to an account. That ETH is removed from circulation. The fee is therefore not validator income, even though validators help produce the blocks that include transactions.
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The EIP-1559 proposal states, “The base fee is always burned (i.e. it is destroyed by the protocol).” The proposal was created on April 13, 2019, and its rule is documented in the official EIP-1559 specification. Ethereum is now proof of stake, so the block producer is a validator, not a miner. A validator may receive a transaction’s priority fee, but not its base fee.
Burning reduces the amount of ETH in circulation compared with what it would have been if that fee had instead been transferred to someone. It does not, by itself, establish that the total ETH supply is shrinking: that depends on the balance between the amount burned and ETH issued over the same period. Nor does a burn mechanism alone establish an effect on ETH’s market price.
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Which fee goes where
An EIP-1559 type-2 transaction has two user-supplied per-gas caps: maxFeePerGas, the maximum total price per gas the sender is willing to pay, and maxPriorityFeePerGas, the maximum tip per gas. The protocol determines the base fee for each block. The actual tip is limited both by the user’s tip cap and by the room remaining under the total fee cap.
| Component | Who determines it? | What happens to it? | Actual charge or cap? |
|---|---|---|---|
| Base fee | The protocol, block by block | Burned | Actual per-gas charge for gas used, if the transaction is included |
| Priority fee (tip) | The sender sets a maximum; the effective amount is constrained by the fee cap and base fee | Credited to the block producer, a validator | Actual per-gas charge can be below the sender’s tip cap |
maxFeePerGas |
The sender | It is not a separate payment recipient or an amount automatically transferred in full | A per-gas ceiling, not the final bill |
| Gas used | Determined by the transaction’s execution | Multiplies the actual per-gas charge to determine the execution fee | The quantity used in the charge, rather than the transaction’s maximum gas allowance |
Ethereum.org describes the base fee as a protocol-set minimum that must be paid for a transaction to be considered valid. Its gas and fees guide explains the base fee, tip, and fee calculation. The Ethereum transactions documentation identifies type-2 transactions as EIP-1559 transactions and describes their 0x02 marker and fee fields.
The two caps serve different purposes. maxPriorityFeePerGas expresses the highest tip the sender is offering, while maxFeePerGas limits the combined base fee and tip. The base fee itself is neither a user-selected bid nor a payment to the validator. For a type-2 transaction, the sender needs enough total-fee headroom to cover the base fee in the inclusion block; any remaining headroom can accommodate the tip, subject to the priority-fee cap.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallHow the base fee changes
The base fee is calculated for each block and responds to how much gas the previous block used relative to a target. When block gas use is above that target, the base fee rises; when use is below the target, it falls. This links the protocol-set minimum to recent demand for block space instead of making the entire fee a directly chosen auction bid.
The exact base fee relevant to a transaction is the one in the block that includes it, not necessarily the figure shown when the sender first checks a wallet. A quote can therefore become stale as conditions change. A higher base fee also leaves less room under a fixed maxFeePerGas for the tip. Ethereum.org’s proof-of-stake overview provides the validator context for the transaction’s block producer and tip.
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This is why a wallet’s fee quote is best read as a suggested set of limits, not as a guaranteed final amount. If the base fee changes before inclusion, the effective tip may change too: it is constrained by the gap between the total-fee cap and the new base fee. The transaction can still fit within its cap while paying a smaller tip than the sender’s priority-fee maximum.
How to calculate the actual type-2 fee
For a type-2 transaction that can be included, the effective priority fee per gas is the smaller of the sender’s tip cap and the room left after accounting for the base fee. In formula form:
effective priority fee = min(maxPriorityFeePerGas, maxFeePerGas − base fee)
The actual per-gas charge is the base fee plus that effective priority fee. Multiply it by gas actually used to get the transaction’s execution fee:
execution fee = gas used × (base fee + effective priority fee)
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This calculation is for the EIP-1559 execution fee. Neither the maximum fee cap nor a maximum gas allowance should be substituted for the actual values in the formula. Any gas not used is refunded rather than charged at the maximum per-gas cap. The specification’s rules for type-2 fee accounting are in the EIP-1559 proposal.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsFor example, if the included transaction uses 21,000 gas at an effective price of 12 gwei per gas, its execution fee is 252,000 gwei. The fee fields alone do not tell you that total: you also need the inclusion block’s base fee and the gas actually used. A transaction with a higher gas allowance does not automatically pay for the unused portion.
Ethereum.org’s illustrative transfer
Ethereum.org gives a teaching example of a simple transfer using 21,000 gas, with a base fee of 10 gwei per gas and a 2 gwei tip. The arithmetic is:
- Total fee: 21,000 × (10 + 2) gwei = 252,000 gwei, or 0.000252 ETH.
- Burned base-fee portion: 21,000 × 10 gwei = 210,000 gwei, or 0.00021 ETH.
- Validator tip: 21,000 × 2 gwei = 42,000 gwei, or 0.000042 ETH.
These are the guide’s illustrative values, not a live quote or a promise that every transfer uses that fee. The example and its explanation are on Ethereum.org’s gas guide.
When the fee cap trims the tip
Suppose a transaction has a 10 gwei base fee, a 2 gwei maximum tip, and a 10.5 gwei maximum total fee. There is only 0.5 gwei of room above the base fee, so the effective tip is 0.5 gwei—not the full 2 gwei tip cap. If the transaction uses 21,000 gas, its charge at those assumed values is 21,000 × 10.5 gwei = 220,500 gwei, or 0.0002205 ETH. Of that, 0.00021 ETH is the burned base-fee portion and 0.0000105 ETH is the tip. This is a calculation illustrating the cap rule, not a network observation.
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If the base fee in a candidate block is above the transaction’s maxFeePerGas, that cap does not cover the required base fee, so the transaction cannot be included in that block under the type-2 fee rules. Increasing the cap can give a transaction room to remain includable if the base fee rises, but it does not mean the sender automatically pays the higher cap.
How to read a wallet quote or transaction receipt
- Find the two fee caps in the quote. For a type-2 transaction, identify
maxFeePerGasandmaxPriorityFeePerGas. Treat both as inputs to the fee calculation, not as amounts that are necessarily paid in full. Ethereum.org’s transaction documentation describes these type-2 fields. - Use the inclusion block’s base fee. The base fee can change between the quote and inclusion because it responds to recent block gas use. A quote alone cannot establish the final base-fee amount if the transaction has not yet been included.
- Work out the effective tip. Subtract the inclusion block’s base fee from the maximum total fee, then compare the remaining room with the maximum priority fee. The effective tip is the lower value.
- Use gas actually used. Multiply that quantity by the base fee plus the effective tip. Do not multiply the maximum fee cap by the maximum gas allowance and label the result the final charge.
- Separate the destinations. The base-fee part of the charge is burned; the effective priority-fee part is paid to the block producer. The entire transaction fee is not validator income.
A wallet’s estimate is useful for deciding what caps to authorize, but it is not the final accounting for an unconfirmed transaction. A receipt or transaction detail that shows the realized gas and effective price can be used to understand the amount charged; the destination split follows the protocol’s base-fee burn and priority-fee rules.
As a quick check, compare a quote’s total-fee cap with the expected base fee: if the cap barely exceeds the base fee, little room remains for the tip. Then, once included, use the actual gas used and effective per-gas price rather than multiplying every maximum shown in the wallet. This keeps a fee ceiling from being mistaken for a payment and keeps the burned portion separate from validator income.
What EIP-1559 does—and does not—say about ETH supply
The burn creates a reduction in supply relative to a counterfactual in which the base fee were transferred instead. To determine whether the total ETH supply actually fell over a chosen interval, however, one must compare all ETH burned with issuance over that same interval. The fee rule alone is not a supply chart, and a burn in one transaction does not imply that ETH is deflationary for every period. Ethereum.org’s technical overview explains the fee mechanism; the proposal itself establishes the protocol’s base-fee burn rule.
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Frequently Asked Questions
What happens to the base fee on an Ethereum transaction?
The protocol-set base-fee amount for the gas the transaction uses is burned rather than transferred to a validator or another recipient. It is removed from circulation.
Who gets the Ethereum gas tip?
The effective priority fee, or tip, is credited to the block producer, which is a validator on Ethereum’s proof-of-stake network. It is separate from the base fee, which is burned.
Is the max fee what I actually pay?
No. maxFeePerGas is a per-gas ceiling. The actual execution fee depends on the inclusion block’s base fee, the effective tip allowed by both fee caps, and the gas actually used. Unused gas is refunded.
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No. Burning reduces supply relative to a situation in which those fees were transferred, but net supply over a given period also depends on ETH issuance during that period.
The Bottom Line
Bottom line: EIP-1559 burns the protocol-set base fee and pays the effective priority-fee tip to the validator. A wallet’s max-fee field is a ceiling, not the bill: the final execution fee uses the inclusion block’s base fee, the effective tip, and gas actually used. The burn reduces supply relative to a no-burn alternative, but does not alone show that ETH’s total supply is shrinking.
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