Author: Giuseppe B 2023-03-03 05:19:44
Published on: 2023-03-03T05:19:44+00:00
In a bitcoin-dev mailing list, Giuseppe B proposed the introduction of a new protocol rule called min_fees. He envisioned a situation where block rewards are almost zero and the base layer is mainly used for settlement transactions, resulting in small transaction fees. Users wouldn't mind paying higher fees for increased network security, but nobody wants to be the only one doing so. Miners would prefer higher fees, but individual rational choices keep fees low. Therefore, the min_fees rule would allow miners to append a minimum fee field to the block they mine, specifying the minimum fees required in the following block for it to be valid. Min_fees could represent either the total fees of the following block or the minimal fee for each single transaction as a percentage of the value transacted. The principle has the potential to bring the equilibrium closer to a socially optimal one and benefit the network security in the long term. However, there are concerns that this could give excessive power to miners since setting the price also means setting the quality of the product offered. Miners have no incentives to post super high numbers as that means they won't get paid or will with a lot of delay. Overall, the proposal deserves deeper analysis and discussion.
Updated on: 2023-06-16T15:59:52.449127+00:00