Author: David A. Harding 2023-03-01 17:17:58
Published on: 2023-03-01T17:17:58+00:00
In a bitcoin-dev mailing list, Rastislav Budinsky proposed a solution where the miner would only take a fraction M of the fees and remaining fraction C would be sent to one or more contracts. Dave, who replied to the email, pointed out that miners can profit from confirming a transaction through alternative means, such as "out-of-band fees". He explained that if consensus rules were changed to require each miner pay a percentage of its in-band fees to future miners, then there would be a strong incentive for miners to prefer out-of-band fees that weren't subject to this redistribution scheme. Dave also mentioned that paying out-of-band fees might lead to almost all fees being paid outside of the protocol, preventing the effective redistribution of fees as in Rastislav's proposal. Moreover, discussions on the mailing list about paying out-of-band fees have highlighted that larger miners have an advantage over smaller miners in collecting miner-specific fee payments, which undermines the decentralization of Bitcoin's transaction confirmation mechanism.
Updated on: 2023-06-16T15:56:50.096508+00:00