Author: John Carvalho 2022-12-12 09:57:37
Published on: 2022-12-12T09:57:37+00:00
The author of the post replies to Zman's claim that RBF is a fee-minimization feature. He argues that this claim neglects the economics of the situation, as the fees are a price on confirmation and there is a peak where total earnings vs price occurs. RBF is an optimization to speed up the discovery of the optimum price, which is desirable. However, many 0-conf acceptors reject opt-in-RBF, so full-RBF is needed to improve price discovery of blockspace when such acceptors are too prevalent. The author also disagrees with Zman's implication that demand follows supply, stating that if Bitcoin has less utility, it will have less demand regardless of whether it is well-optimized to allow for capacity saturation. The optimal state would result from the most value provided per blockspace per time period. Though there is always a maximum quantity of demand willing to pay any given fee, the author expresses how zero-conf currently creates added demand for blockspace by merchants/consumers, resulting in demand for next-block inclusion due to merchants qualifying fee rates to be eligible for zero-conf acceptance.
Updated on: 2023-06-16T03:17:14.670692+00:00