Dynamic Fee Adjustment refers to a mechanism used to optimize transaction fees based on current network demand. When more users attempt to make transactions, the network may become congested, leading to longer confirmation times. To address this, some platforms automatically adjust transaction fees in real-time.When demand is high, fees increase to incentivize miners to prioritize certain transactions. Conversely, when demand is low, fees can decrease to encourage more activity on the network. This helps maintain a balance between transaction speed and cost.By implementing dynamic fee adjustment, users can ensure their transactions are processed in a timely manner while also keeping costs manageable. This system enhances overall efficiency and can lead to a better user experience, especially during times of high activity.