Base fee refers to the minimum fee that users need to pay to conduct a transaction on a blockchain network, particularly in systems utilizing a fee-burning mechanism. The base fee is adjusted algorithmically based on network congestion, ensuring that users pay a fair price in relation to the current demand for transaction processing.

This adjustment mechanism helps maintain a balance between transaction speed and cost. When the network is busy, the base fee increases, making it more expensive and incentivizing users to either pay more or wait. Conversely, when the network is less congested, the base fee decreases, allowing for cheaper transactions.

In some networks, a portion of the fees collected, including the base fee, is burned or removed from circulation, which can affect the overall token supply and value. Understanding the base fee is essential for users to efficiently plan their transactions and manage costs.