Author: Andrew Cann 2020-03-23 12:59:22
Published on: 2020-03-23T12:59:22+00:00
The author poses a question about the long-term plan for Bitcoin's security once the block reward drops too low. Currently, miners make a profit from block rewards and transaction fees, but when the block reward drops to zero, the hope is that transaction fees will keep mining expensive enough to deter attacks. The author suggests implementing an adjustable block reward where bitcoin holders can vote on the inflation rate, balancing their incentives to keep the reward low while also incentivizing mining to keep the network secure. This could be done by adding an optional field to each txout, signaling the holder's preferred inflation rate. The median inflation rate of all pre-existing utxos weighted by value would then calculate the block's reward. The author asks if this idea is fundamentally flawed or if there are better ideas for ensuring the network's security.
Updated on: 2023-06-14T00:10:15.441426+00:00