Fee Bumping

Fee bumping is the practice of increasing the fee associated with a pending transaction to encourage validators to process it more quickly. This is often done using the replace-by-fee mechanism or by broadcasting a child-pays-for-parent transaction.

It is a necessary response to changing market conditions where the initial fee is no longer sufficient to secure timely inclusion. Traders use fee bumping to manage execution risk during periods of high volatility or when the gas market unexpectedly spikes.

Understanding how to effectively bump fees is a core skill for anyone managing active trading positions on-chain. It is a tactical maneuver that balances the cost of the transaction against the urgency of the trade.