How Ethereum's EIP-1559 fee mechanism works and how it burns ETH

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EIP-1559 is an Ethereum upgrade that replaces the traditional gas fee model with a dynamic base fee plus a tip for validators. Each transaction now carries a maximum fee the sender will pay, and the protocol automatically adjusts the base fee according to network congestion. The base fee is burned, which reduces the total circulating supply of ETH. The change is intended to make transaction costs more predictable and avoid extreme fee spikes. Validators still receive the tip portion, which keeps them incentivized to secure the network.

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