Rebatable fees & incentive-safe fee markets



Summary:

In a mailing list discussion, Daniele Pinna raised the question of whether a miner is incentivized to limit the amount of transactions in a block to capture the maximum fee of the ones included. He argued that if a transaction pays a high fee, the miner would be incentivized to include that transaction alone to avoid lower fee paying transactions reducing the amount of fees he can earn. This could potentially clog the network by paying a high fee every ten minutes. Another concern was raised that if blocks were required to be full, miners could fill the remainder of the block with their own high fee paying transactions. The discussion highlights the need for further exploration and optimization of the Bitcoin network's fee structure and incentives for miners.


Updated on: 2023-06-12T19:13:51.099123+00:00