Dynamic fee refers to a pricing mechanism used in blockchain transactions that adjusts based on current network conditions. Unlike fixed fees, dynamic fees fluctuate to reflect demand for processing transactions.When the network is busy, fees rise to prioritize transactions. This means users willing to pay more can have their transactions confirmed faster. Conversely, during low traffic periods, fees decrease, making transactions cheaper.This system helps maintain network efficiency. It prevents congestion by encouraging users to pay higher fees when the demand is high, which in turn helps miners and validators prioritize their work.Dynamic fees can also offer a more equitable approach for users. Miners can choose to process transactions from those who are willing to pay a premium, ensuring that resources are allocated optimally. As a result, the overall user experience can be improved, balancing costs and speed for different types of transactions.