Target Block Utilization
Target Block Utilization is the ideal percentage of block space that a protocol aims to fill with transactions. Protocols use this target to calibrate the base fee, increasing it if the actual utilization exceeds the target and decreasing it if it falls below.
This feedback loop ensures that the network operates at a consistent and efficient level of throughput. By maintaining this target, the system avoids both extreme congestion and under-utilization of computational resources.
It provides a stable framework for developers and users to predict the costs of interacting with the blockchain. This parameter is central to the design of self-regulating fee markets.