> For the complete documentation index, see [llms.txt](https://change-chain-1.gitbook.io/change-chain/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://change-chain-1.gitbook.io/change-chain/mining/gas-model.md).

# Gas Model

## **Dynamic Gas Pricing**:

* Gas prices adjust based on network congestion.
* **EIP-1559 Style Fee Mechanism**:
  * Introduces a base fee that adjusts per block, with an optional priority fee (tip) to incentivize miners.

## **Transaction Fees**

### **Transaction Fee Calculation**

**Equation:**

$$
Transaction Fee=Gas Used×Gas Price\text{Transaction Fee} = \text{Gas Used} \times \text{Gas Price}Transaction Fee=Gas Used×Gas Price
$$

### **With EIP-1559 Style Fee Mechanism:**

$$Total Fee=(Gas Used×Base Fee)+Tip\text{Total Fee} = (\text{Gas Used} \times \text{Base Fee}) + \text{Tip}Total Fee=(Gas Used×Base Fee)+Tip$$

**Explanation:**

* **Gas Used**: The amount of computational work required.
* **Gas Price**: The price per unit of gas, adjusted dynamically.
* **Base Fee**: The minimum fee per gas unit, burned to reduce supply.
* **Tip**: An additional fee paid to miners as an incentive.
* Users pay gas fees calculated as **Gas Used × Gas Price**.
* Fees are deducted from the sender's account upon transaction execution.

## **Fee Distribution**:

* **Base Fee Burn**:
  * A portion of the base fee is burned (removed from circulation), potentially reducing total supply over time.
* **Miner Incentives**:
  * Miners receive the priority fee (tip) and a portion of the base fee as an incentive.