[Bitcoin-ml] Proposal for a future blockspace/fee market discovery mechanism

[Gal Buki]

Thanks for your responses.


> https://bitcoinclassic.com/devel/Blocksize.html

Miners can create blocks of different sizes and this could in turn have an
impact on the fees.
But it will be indirectly and users would always have to guess the fee
based on past blocks instead of just knowing what the acceptable fee is.


> Regarding Section 3, "additional complexity," how would a miner ever
determine how long a tx has been waiting for inclusion?

> AFAIK, there's no easy way to determine a tx has been waiting 5, 10, etc
blocks, so I fail to see how anything beyond "include any tx with fee >
X" and "include every tx of type Y" could be done for every block
without adding excessive overhead.

I can see that this could be overhead.

A simpler approach would be not to care who created the blocks.
A miner would know what the height was when the tx was added to the
mempool and base the decision on this.

An algorithm could be something like

"if tx.fee >= minfee.bfc5 && tx.height + 5 <= current.height then include"

> Have you drafted/outlined any code that could handle this for the miners?

No. I wanted to see if the idea was any good.

> I appreciate your efforts to start the discussion here!

Thanks, much appreciated.


> Just to be clear, Bitcoin is not going to need any artificial fee
strucutre for decades as the block reward is going to be there for a
long time.

This should not be an artificial fee structure but a way to have a real
market - fee discovery.
No fee should be predefined in code but every miner should be able to
easily publish his requested fee.

I agree that the block reward will be a powerful subsidy for many years to
come but if there was no need for fees at all we would all create 0 fee
tx.
This has not been the case even before blocks became full. Some tx had no
fees but most had one.


> Doubling the price every 4 years is a very low bar that I have no doubt
will be possible in order to sustain the mining industry.

We also have to compensate for the difficulty increase.


> The current guessing game for fees, even when the blocks aren't full,
leads to a terrible user experience everywhere that user expectations
don't match reality, and vice versa.

This is the main point behind this idea. There should be no guessing but
guaranteed inclusion as long as the user pays the requested fees of the
market.


Gal

--
Gal Buki


On Tue, August 15, 2017 9:51 pm, Oliver Petruzel via bitcoin-ml wrote:
>>>Removing artificial obstacles is the thing we need. Not creating new
>>> ones
> to
> try and control the fees.
>
> I'm not suggesting that fees themselves should be structured, and I don't
> believe that "Fee Discovery" has anything to do with control.
>
> I believe it has to do with awareness, and thus providing users with a
> much
> more clear understanding of exactly what fees they should use, when they
> should use them, and what they can expect as a result.
>
> The current guessing game for fees, even when the blocks aren't full,
> leads
> to a terrible user experience everywhere that user expectations don't
> match
> reality, and vice versa.
>
> Oliver
>
>
> On Aug 15, 2017 15:39, "Tom Zander via bitcoin-ml" <
> bitcoin-ml at lists.linuxfoundation.org> wrote:
>
> On Tuesday, 15 August 2017 21:14:19 CEST Oliver Petruzel via bitcoin-ml
> wrote:
>> Don't get me wrong -- a better fee discovery system is a much needed
>> upgrade for every coin,
>
> Just to be clear, Bitcoin is not going to need any artificial fee
> strucutre
> for decades as the block reward is going to be there for a long time.
>
> Doubling the price every 4 years is a very low bar that I have no doubt
> will
> be possible in order to sustain the mining industry.
>
> I’d like to aim your efforts at creating an open market for block space.
> Removing artificial obstacles is the thing we need. Not creating new ones
> to
> try and control the fees.
> --
> Tom Zander
> Blog: https://zander.github.io
> Vlog: https://vimeo.com/channels/tomscryptochannel
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