Author: Peter Grigor 2014-05-13 01:21:44
Published on: 2014-05-13T01:21:44+00:00
The proposal is to calculate the transaction fee as a percentage of the input amount divided by the confirmations of the input multiplied by the number of inputs. This ensures that the transaction fee always makes sense regardless of the bitcoin price in fiat. Dividing the fee by the number of confirmations discourages hasty spends and rewards savings, while multiplying the fee by the number of inputs discourages "payment fragmenting." Payment fragmenting occurs when multiple inputs are required to pay for larger purchases, leading to higher transaction fees. The proposed formula for calculating transaction fees is ((INPUT_AMOUNT * BASE_PERCENT) / CONFIRMATIONS) * NUMBER_OF_INPUTS. The INPUT_AMOUNT, CONFIRMATIONS and NUMBER_OF_INPUTS would be determined by the creator of the transaction, while the BASE_PERCENT would be hard-coded in the bitcoind software. A spreadsheet has been created to show the various fees by amount and confirmations based on this proposal.
Updated on: 2023-06-08T22:35:20.001905+00:00