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Ethereum started with a simple incentivization mechanism for miners to include transactions in a block. The user would submit a transaction with a maximum gasLimit for executing the transaction, for example, 100k and a gasPrice - for example 9 gwei. Hence, the maximum fee that the user would pay in this case, would be 900k gwei (900 Szabo) If the transaction only consumes 50k gas, then the miner is rewarded 50k gas * the gas price - 450k gwei. And the user gets refunded the rest of 50k gas * the gas price. This is now called a legacy type transaction and it is still supported in Ethereum. Then EIP-1559 came and said that miners should not get all the transaction costs. They should only get the priority fee that users set aside for them. So, we start again from 100k gasLimit at a maximum price of 9gwei. Users are refunded the gas that has not been used. And the rest is split into a base fee and a priority fee. The base fee is the amount of gasUsed * by the current blocks baseFee per g