Author: Andrew Melnychuk Oseen 2023-03-04 06:21:44
Published on: 2023-03-04T06:21:44+00:00
The author of the message is proposing a new protocol rule called min_fees. In the scenario where block rewards are almost zero, and the base layer is mainly used as a settlement layer for relatively few large transactions, transaction fees may end up being very small since there is enough space for everyone in a block. The proposed min_fees rule would require the miner that gets to mine a block to append a min_fee field to the block, specifying the minimum fees that need to be contained in the following block in order for it to be valid. This could potentially bring the equilibrium closer to a socially optimal one and benefit the network security in the long term. The author also notes that they do not know of any data of what happens at the point where the coinbase drops to below the fees on any chain, and they think as bitcoin's capabilities grow, demand for it will as well. There are a lot of efforts to increase the amount of transactions that can fit into a block. The combination of limited block space and a reduced amount of bitcoins entering the market is the right combination for the system to self-sustain.
Updated on: 2023-06-16T15:58:43.595947+00:00