Author: Ben Kloester 2017-11-30 02:38:25
Published on: 2017-11-30T02:38:25+00:00
A proposal to redesign Bitcoin's fee market has been suggested by William Morriss via Bitcoin-dev. The goal is to maximize total transaction fees and reduce pending transaction time while reducing individual transaction fees. Currently, the supply curve is inelastic, limiting the number of transactions that can be included in a block. The proposal suggests miners implicitly choose the market sat/byte rate with the cheapest-fee transaction included in their block and removing the block size limit. This allows for a dynamic block size limit regulated by profit motive and maximizes transaction fees for every block without overpaying. Miners are incentivized to ignore low-fee transactions, while users and services bid higher fees to reach the next block, as excess bid will be refunded. The proposal also includes examples of scenarios showing how miners would create blocks and receive rewards.
Updated on: 2023-06-12T22:23:09.324289+00:00