Author: Gregory Maxwell 2014-10-06 00:01:46
Published on: 2014-10-06T00:01:46+00:00
In an email exchange from October 5th, 2014, Jorge Timón discusses the eventual disappearance of mining subsidies for Bitcoin and how transaction fees will inevitably become higher than these subsidies. Timón proposes a hypothetical scenario in which instead of a subsidy, Bitcoin would have initially come with a set of nlocktimed transactions that pay fees for each block from the start until the subsidy disappears. This mental model may help explain why some people believe that nlocked transactions and a lower block size are necessary to address concerns about transaction fees and backlog.
Updated on: 2023-05-19T19:20:31.361679+00:00