Author: vjudeu at gazeta.pl 2022-08-19 05:34:25
Published on: 2022-08-19T05:34:25+00:00
The potential problem of not enough fees to upkeep mining security can be solved in ways other than tail emission. One possible solution is to add emission based on a constant fraction of fees in the block, tying coinbase rewards to the real world and ensuring higher block revenue indefinitely. However, this system can be gamed by miners who move their own coins in 100% fees transactions, creating more coins out of thin air. Additionally, blockchain security does not need to increase indefinitely, and there must be some idea of how much security is sufficient. While constant tail emission converges to zero inflation over time, it only delays the potential problem of mining rewards, buying an additional 46 years of extra time with a tail emission of 200,000 BTC per year. The loss rate for bitcoin is also likely to decrease as methods of storing bitcoin mature, making the impact of monetary deflation at the rate of loss insignificant. Large stakeholders are not incentivized to mine, and swapping PoW to PoS would be a degradation of Bitcoin due to human greed. If fees are not sufficient, clearance times increase, and in the worst case, the system degrades to proof of stake. Therefore, the community needs to have some idea of what "enough security" is to evaluate whether or not it is likely that bitcoin fees alone will be able to sustain enough security.
Updated on: 2023-06-15T22:31:45.468783+00:00