Ethereum Plans Fee System Overhaul to Restore Its Competitive Edge

Ethereum is currently undergoing a major change in its transaction fees to simplify user experience and improve sustainability.

Written by: Sophia Cruz • Wednesday, August 6, 2025 • 1 min read

• Last updated: Wednesday, August 6, 2025

Quick overview

Ethereum is simplifying its transaction fee structure to enhance user experience and sustainability.
The proposed updates aim to make gas fees more predictable, reducing friction for users in estimating costs.
Despite stable prices, engagement on other blockchains has surged, while Ethereum's gas fees have reached historic lows.
The changes are designed to restore development activity on Ethereum's mainnet and improve competitiveness in the market.

Ethereum is currently undergoing a major change in its transaction fees to simplify user experience and improve sustainability. With less transactions on the Ethereum mainnet and more activity shifts to Layer2 solutions, developers are now strategizing the core design of Ethereum’s gas system

The proposal includes updates of streamlined fee structure that would make estimating and paying transaction fees more predictable. For users, determining the right gas fee has been a challenge. The new improvements will lessen that friction, enhancing transparency and enabling holders and applications to manage costs more effectively.

Ethereum’s price hasn’t changed much, but developer and user engagement on other blockchains has increased more rapidly. Due to a discernible decline in DeFi and NFT usage earlier this year, Ethereum’s gas fees dropped to their lowest points in a number of years.

In 2021, the introduction of a dual system of base fees and validator tips serves as the basis for the planned change. Because base fees are immediately burned, they add to Ethereum’s deflationary pressure, particularly when demand is high. Future updates will maintain that method while implementing enhancements to make fees more manageable for both automated platforms and regular consumers.

Restoring more development activity on Ethereum’s mainnet is one of the main goals of this update. Developers might be less likely to rely solely on Layer 2 networks if gas prices become more predictable and reasonably priced. Both individual builders and organizations that favor clear and uniform cost structures stand to gain from this potential restoration of on-chain activity.

For traders and investors, this signals a broader strategic shift. Ethereum is not only focused on scaling through technical upgrades but is also refining its economic design to remain competitive.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.