Author: Anthony Towns 2022-07-11 23:29:47
Published on: 2022-07-11T23:29:47+00:00
In a recent communication on Bitcoin-dev, Bram Cohen discussed transaction fees and their impact on the security of blockchain networks. The even distribution of these fees over time could act similarly to fixed block rewards, but in reality, this is not the case. Market design is key to ensuring that fees are chosen based on the weight of transactions, with weight being the sole limiting factor for miners. However, there has been little effort put into this area for Bitcoin. Evidence shows that the market can support higher fees, though it's unclear whether working on this today would be smart. Currently, the subsidy for Bitcoin is already substantial at $6.5 billion USD per year. Raising fees to 10% of block reward would transfer another $650M USD from bitcoin users to miners, achieving very little beyond refuting some FUD.
Updated on: 2023-05-22T20:44:06.610728+00:00