[Opt-in full-RBF] Zero-conf apps in immediate danger (angus)



Summary:

In a discussion about full RBF, it was pointed out that it aligns with miner and user economic incentives. However, this argument can be refuted as RBF is actually a fee-minimization feature that allows users to spend the least amount in fees that correlates to their time-preference, which results in miners earning less. Additionally, nodes providing replacement service and propagation incur an expense. Fees are a price on confirmation, and in economics, there is a "price theory" where total earnings vs price has an optimum price, and it may very well be lower than the prevailing market price of a good. Therefore, RBF is an optimization to speed up the discovery of the optimum price, and it is desirable. However, many 0-conf acceptors outright reject opt-in-RBF, despite the improved discovery of the optimum price, and thus there is a need for full-RBF to improve price discovery of blockspace when such acceptors are too prevalent.


Updated on: 2023-06-16T03:17:39.073450+00:00