Definition ∞ A transaction fee cap is an upper limit placed on the amount of fees users can pay for processing a transaction on a blockchain network. This mechanism is implemented to prevent excessively high transaction costs, particularly during periods of network congestion. It aims to make network usage more predictable and affordable.
Context ∞ Transaction fee caps are a recurring discussion point in blockchain governance, particularly in networks experiencing high demand. While they can mitigate extreme costs, they may also lead to transactions being delayed during peak times if the cap is too low. Balancing user affordability with network security and miner incentives remains a key challenge in protocol design.
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