Re: [bitcoin-dev] BIP Idea: Marginal Pricing

From: bitcoin-dev-boun...@lists.linuxfoundation.org on behalf of William Morriss via bitcoin-dev Sent: Thursday, 30 November 2017 11:47:43 AM To: bitcoin-dev@lists.linuxfoundation.org Subject: [bitcoin-dev] BIP Idea: Marginal Pricing Comrades, Long term, tx fees must support

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

ember 29, 2017 7:47 PM To: bitcoin-dev@lists.linuxfoundation.org Subject: [bitcoin-dev] BIP Idea: Marginal Pricing Comrades, Long term, tx fees must support hash power by themselves. The following is an economic approach to maximize total fee collection, and therefore hashpower. Goals Maximize

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

and deters spamming of the mempool. Also, revenue is not lost from people with higher willingness to pay. Chenxi From: William Morriss Sent: Wednesday, November 29, 2017 11:05 PM To: Chenxi Cai Cc: Bitcoin Protocol Discussion Subject: Re: [bitcoin-dev] BIP Idea

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

On 11/29/2017 10:13 PM, William Morriss via bitcoin-dev wrote: > On Wed, Nov 29, 2017 at 6:38 PM, Ben Kloester > wrote: > > Something similar to this has been proposed in this article by Ron > Lavi, Or Sattath, and Aviv Zohar, and discussed in this bitcoin-d

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

On Thu, Nov 30, 2017 at 6:13 AM, William Morriss via bitcoin-dev wrote: > I believe this OOB scenario is imaginary. Either it would be more profitable Out of band fees are a reality even today-- and have for most of Bitcoin's life--, without a system that has any particular incentive for them. >

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

On Wed, Nov 29, 2017 at 9:52 PM, Chenxi Cai wrote: > Hi All, > > > Auction theory is a well-studied problem in the economics literature. > Currently what bitcoin has is Generalized first-price auction, where > winning bidders pay their full bids. Alternatively, two approaches are > potentially vi

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

The main issue that I see with this proposal is that miners can still spam the network for free even with high sat/byte fee levels. They can first choose the sat/byte rate that maximize their profit, and then include a lot of spam transactions at that rate that will only pay fees to themselves, eff

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

On Wed, Nov 29, 2017 at 6:38 PM, Ben Kloester wrote: > Something similar to this has been proposed in this article by Ron Lavi, > Or Sattath, and Aviv Zohar, and discussed in this bitcoin-dev thread > https://lists.linuxfoundation.org/pipermail/bitcoin- > dev/2017-September/015093.html > > They

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

9, 2017 5:47 PM To: bitcoin-dev@lists.linuxfoundation.org Subject: [bitcoin-dev] BIP Idea: Marginal Pricing Comrades, Long term, tx fees must support hash power by themselves. The following is an economic approach to maximize total fee collection, and therefore hashpower. Goals Maximize total t

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

This idea presumes that the protocol has any ability to regulate fees. I believe the locally optimal strategy for both miners and payers alike is to accept (pay) zero fees natively in the protocol and instead accept (pay) their actual fees out-of-band or via OP_TRUE outputs which the miner can simp

Re: [bitcoin-dev] BIP Idea: Marginal Pricing

Something similar to this has been proposed in this article by Ron Lavi, Or Sattath, and Aviv Zohar, and discussed in this bitcoin-dev thread https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2017-September/015093.html They only discussed changing the fee structure, not removing the block s

[bitcoin-dev] BIP Idea: Marginal Pricing

Comrades, Long term, tx fees must support hash power by themselves. The following is an economic approach to maximize total fee collection, and therefore hashpower. *Goals* Maximize total transaction fees Reduce pending transaction time Reduce individual transaction fees *Challenges* Validators