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Ethereum Upgrade Targets the 21,000-Gas Limit Embedded in Wallet Transactions

Ethereum is set to alter one of the network’s most familiar transaction-cost assumptions: the standard 21,000-gas fee will no longer apply to every basic ETH transfer. Sending ETH to a completely new address will require more gas than sending it to an account that already exists.

The Ethereum Foundation has advised wallet developers, blockchain tracking platforms and gas-fee tools to update software that relies on 21,000 gas as a fixed transaction cost. Gas represents the computational resources needed to process activity on Ethereum, with transaction fees paid in ETH.

Currently, users pay 21,000 gas whether the recipient has previously interacted with Ethereum or is receiving funds for the first time. That changes with the upcoming Glamsterdam upgrade. Transfers to existing accounts will retain the 21,000-gas cost, while transfers to previously unused addresses will require additional gas because Ethereum must create and store a new account.

The proposed additional charge amounts to 183,600 units under a new type of gas known as state gas.

Why Ethereum’s 21,000-Gas Standard Is Changing

The 21,000 figure has been embedded in Ethereum software for years. Wallets commonly use it to estimate the gas required for basic payments, while blockchain infrastructure uses the figure when processing and categorizing transactions.

Once Glamsterdam goes live, applications that assume 21,000 gas is always enough for an ETH transfer could malfunction. They could reject valid transactions or provide users with fee estimates that do not cover the actual cost.

The reason for the change is that sending funds to an existing account and sending them to a new address require different amounts of network resources. An existing account only requires Ethereum to update balances already stored in its state. A new recipient, by contrast, requires the network to create and permanently maintain a new account record.

Despite that difference, both transaction types have historically carried the same gas cost.

Testing Begins Before Mainnet Deployment

Ethereum developers still have time to update their systems before the new fee structure reaches the main network.

Glamsterdam will first be tested on Platåberget, a development network that uses valueless tokens to allow developers to identify and resolve potential issues. It will then move to the Sepolia and Hoodi testnets before eventually being deployed on Ethereum’s mainnet.

For people simply sending ETH, no immediate action is required. The change primarily affects the wallets, blockchain services, fee calculators and other applications responsible for estimating and processing Ethereum transactions.