What is a 'Gas War' and under what circumstances does it typically occur?

Okay, no problem. Let's talk in plain English about what this "Gas Fee War" is all about.

What is a “Gas War”?

Hey there! Let me give you an analogy, and you'll get it right away.

Imagine rush hour in a busy city center, when suddenly a heavy rain starts pouring, and everyone wants to get a taxi home. But the number of taxis on the road is limited. What happens then?

• Some people are willing to pay more, telling the driver, "I'll add 50 bucks, take me first!"
• Another person overhears and immediately shouts, "I'll add 100! I'm in a bigger hurry!"
• Soon, in order to get a ride, everyone starts "bidding" against each other. Whoever offers the highest fare gets priority service from the driver.

A "Gas War" is exactly like this scenario.

On blockchain networks like Ethereum:

• Taxis = The blockchain's capacity to process and include transactions (a block can only hold a limited number of transactions).
• Passengers = Transactions waiting to be processed (like transfers, buying/selling NFTs, etc.).
• The extra fare you're willing to pay = Gas Fee (also known as miner fee or transaction fee).

When a massive number of transactions suddenly floods the network, and everyone wants their transaction processed first, people start outbidding each other by raising the Gas fee they're willing to pay. You bid 10, I bid 20, someone else bids 50, all to "bribe" the miners (now validators) to prioritize their transaction into a block.

This phenomenon, where people frantically bid to secure limited block space, causing Gas fees to skyrocket instantly, is known as a "Gas War."

When does it usually happen?

A Gas War is essentially a "too many wolves, too little meat" situation – at a certain moment, the number of people (transactions) wanting to get on board far exceeds the number of available "cars" (block space). It typically occurs in the following "rush to buy" scenarios:

1. First Sale (Mint) of a Hot NFT Project

   • This is definitely the number one trigger. For example, a highly anticipated NFT project with 10,000 limited editions, but 100,000 people are vying to buy. As soon as the sale begins, everyone instantly submits their purchase transactions. To ensure they get one, people will desperately raise their Gas fees, hoping to cut the line. It's like scrambling for concert tickets – the server (blockchain) instantly gets swamped.

2. Initial Offering (IDO/IEO) of a Hot New Coin

   • Similar to rushing for NFTs. When a star project publicly offers its tokens for the first time, because early prices are often low and have huge appreciation potential, it attracts a large number of users to rush in and buy at the same time. To successfully purchase, a Gas War is inevitable.

3. Claiming "Airdrops" from Popular Projects

   • When a well-known project distributes rewards (airdropped tokens) to early users, it usually opens up claiming at a fixed time. Tens of thousands of eligible users will simultaneously flood the network to "claim their money." Although it's free to claim, the act of claiming itself is a transaction and requires a Gas fee. To claim it early for selling or using, people will also start competing with Gas fees.

4. Extreme Market Conditions

   • When the market experiences severe volatility, for instance, a price crash, many people will panic-sell assets or liquidate others' collateral. Conversely, when prices surge, everyone rushes to buy. At such times, on-chain transaction volume can instantly explode, leading to network congestion and soaring Gas fees.

5. Certain Special On-Chain Activities or Bot Arbitrage

   • Sometimes, cleverly designed on-chain games or arbitrage opportunities emerge, attracting a large number of bots. These bots, in order to gain an early advantage, will pay extremely high Gas fees regardless of cost, making it impossible for regular users to compete with them.

In Summary

Simply put, a Gas War is a large-scale "online auction," and the item being auctioned is the right to "have your transaction processed first" on the blockchain. When something (NFT, new coin, airdrop) becomes too popular and everyone wants it, this "auction" automatically begins.

Its direct consequence is that the transaction costs across the entire network become very expensive; sometimes you just want to make a regular transfer, but you might have to pay ridiculously high fees. So, next time you see Gas fees suddenly sky-high, it's very likely that there's another "Gas War" happening somewhere.