An Adaptive Network Fee is a fee that varies based on network congestion. When the network is busy, the fee increases to incentivize miners to prioritize processing transactions with higher fees. Conversely, when network activity is low, the fee decreases to encourage more transactions to be included in the next block.
This fee adjustment mechanism helps maintain a balance between transaction speed and cost. Users can manually input a fee amount to prioritize their transaction, but the adaptive fee ensures that transactions are processed efficiently during periods of high demand.
By dynamically adjusting fees, the network can prevent long wait times and ensure that transactions are processed in a timely manner. This system also helps prevent network congestion and ensures a smoother experience for users sending and receiving cryptocurrency.
