Definition ∞ An L2 Fee Market is a system where users pay transaction fees on a Layer 2 scaling solution, distinct from the main Layer 1 blockchain’s fee structure. This market typically offers lower and more predictable costs due to increased transaction throughput and reduced network congestion. It optimizes resource allocation on scaling networks by allowing users to bid for transaction inclusion.
Context ∞ The state of L2 fee markets is currently dynamic, with various Layer 2 solutions implementing different fee models and optimization strategies. A key discussion involves balancing economic efficiency with fairness and preventing front-running within these secondary markets. Future developments will likely see these fee markets become more sophisticated, potentially incorporating mechanisms for stable fee prediction and enhanced user experience across diverse Layer 2 platforms.
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