Definition ∞ Dynamic Pricing is a strategy where the cost of a good or service adjusts in real-time based on market conditions, demand, or other variables. In blockchain contexts, this often applies to transaction fees, which can fluctuate significantly depending on network congestion and the urgency of transaction inclusion. This mechanism helps manage network load and resource allocation.
Context ∞ Dynamic pricing mechanisms, particularly for gas fees on platforms like Ethereum, are frequently discussed in crypto news during periods of high network activity. Users experience variable transaction costs, which can impact the accessibility and affordability of decentralized applications. Efforts to implement more predictable and stable fee models are ongoing, aiming to enhance user experience without compromising network security.
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