Definition ∞ Fee market decoupling separates transaction fees from the block reward paid to network validators. This mechanism changes how transaction fees are structured and distributed within a blockchain network, often by introducing a base fee that is burned rather than given to validators, alongside an optional tip. The aim is to make transaction costs more predictable and to reduce validator incentives to manipulate block space. This design modification influences network economics and the security model by altering the revenue streams for block producers.
Context ∞ Fee market decoupling is a significant protocol upgrade implemented in certain blockchain networks, notably Ethereum with EIP-1559, to address issues of transaction fee volatility and miner extractable value. The ongoing discussion concerns its effectiveness in achieving predictable fees and its long-term impact on network security and decentralization. Future analyses will continue to assess its influence on transaction inclusion dynamics and the overall economic stability of the network.
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