Author: William Morriss 2017-11-30 06:13:15
Published on: 2017-11-30T06:13:15+00:00
The email thread discusses a proposal for redesigning the fee market of Bitcoin. The proposed mechanism is equivalent to the "Monopolistic Price Mechanism" discussed in a research paper by Ron Lavi, Or Sattath, and Aviv Zohar. However, the prior discussion only concerns the fee structure and not removing the block size limit. The previous proposal broke down due to Peter Todd's concern with out-of-band payments, which miners can circumvent. Mark Friedenbach argues that out-of-band payments are penalized in part because the end-user could have bid higher instead of paying OOB. On the other hand, Peter Todd argues that a miner could mine only out-of-band transactions, which could have no on-chain fees and thus be disregarded by other miners. But this scenario is imaginary as it would either be more profitable for a miner to mine fairly or cheaper for the end-user to pay the fee in-band. The system disincentivizes out-of-band tx fees, and there is no more centralization pressure with marginal fees than before.
Updated on: 2023-06-12T22:22:41.649947+00:00