# Gas Recoveries ### Introduction to Ethereum Gas Fees Every Ethereum transaction requires a gas fee, which consists of two main components: * **Base Fee**: A mandatory fee set by the network, which adjusts dynamically based on demand to ensure transactions are included in a block. * **Priority Fee**: An optional incentive paid to validators or builders to prioritize faster transaction processing. ### How Blink Recovers Priority Fees Blink processes over 20% of daily Ethereum transactions and works closely with block builders, who are responsible for including transactions in Ethereum blocks. By leveraging our large-scale network and deep integration with the transaction lifecycle, Blink recovers a portion of the **Priority Fees** without impacting transaction speed or causing delays. With the separation of proposing and building roles in Ethereum’s **Proposer-Builder Separation (PBS)** model, the gas fee market can become more efficient and fair. However, many users still overpay to ensure their transactions are included in a block. Blink helps recover the difference between these overpayments and the actual fair market price for gas fees.\ \ If we receive a recovery transaction from multiple sources, we attribute it to the source we received it from first. #### Example of Overpayment Recovery: Consider a simple "send" transaction, which uses **21,000 gas units**. * A typical user might set their gas price at **1 Gwei** per unit. * The fair market price, approximately equal to the transaction with the lowest priority fee in a block, is typically around **0.05 Gwei** per unit. However it can vary dramatically. In the case that 0.05 Gwei is the "fair" price, the user in our example has overpaid by: $$ 0.95Gwei×21,000=19,950Gwei $$ This translates to roughly **$0.05** (as of September 2024). Blink’s expertise lies in optimising gas fee markets for our customers, aiming to recover as much of this overpayment as possible, with no impact on the speed of transaction inclusion. ### Is Gas Recovery Relevant to You? Gas fee recovery may be applicable depending on the nature of your transactions. To learn more and explore how this can benefit your operations, reach out to us at --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.blinklabs.xyz/blink/ethereum/gas-recoveries.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.