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From: Natanael <natanael.l@gmail.com>
Date: Fri, 31 Mar 2017 06:15:17 +0200
Message-ID: <CAAt2M192cpCKbzDBoSs7LEDWQz16M3dB6tP8Ys15k7X7aD_Jzg@mail.gmail.com>
To: Bitcoin Dev <bitcoin-dev@lists.linuxfoundation.org>
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Subject: Re: [bitcoin-dev] Block size adjustment idea - expedience fees +
 difficulty scaling proportional to block size (+ fee pool)
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Sorry for sending a double, hit the wrong button...

Den 31 mars 2017 06:14 skrev "Natanael" <natanael.l@gmail.com>:

>
>
> Den 30 mars 2017 11:34 skrev "Natanael" <natanael.l@gmail.com>:
>
> Block size dependent difficulty scaling. Hardfork required.
>
> Larger blocks means greater difficulty - but it doesn't scale linearly,
> rather a little less than linearly. That means miners can take a penalty in
> difficulty to claim a greater number of high fee transactions in the same
> amount of time (effectively increasing "block size bitrate"), increasing
> their profits. When such profitable fees aren't available, they have to
> reduce block size.
>
> In other words, the users literally pay miners to increase block size (or
> don't pay, which reduces it).
>
>
> This can be simplified if we do get a fee pool (less hardfork code, more
> softfork code), except that the effect will be partially reduced by the
> mining subsidy until it approximately reaches parity with average total
> fees.
>
> We don't need to alter difficulty calculation.
> Instead we alter the percentage of the fees that the miner gets to claim
> VS what he have to donate to the pool based on the size of the block he
> generated.
> Larger block = smaller percentage of fees. This is another way to pay for
> blocksize. The effect of this is that on average, miners that generate
> smaller blocks takes a share of what otherwise would be part of the mining
> profits of those generating larger blocks.
>
> We would need to keep pieces of the section from above on expected
> blocksize calculation. Because the closer you are to the expected
> blocksize, the more you keep. And thus we need to adjust it according to
> usage.
>

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<div dir=3D"auto">Sorry for sending a double, hit the wrong button...=C2=A0=
</div><div class=3D"gmail_extra"><br><div class=3D"gmail_quote">Den 31 mars=
 2017 06:14 skrev &quot;Natanael&quot; &lt;<a href=3D"mailto:natanael.l@gma=
il.com">natanael.l@gmail.com</a>&gt;:<br type=3D"attribution"><blockquote c=
lass=3D"gmail_quote" style=3D"margin:0 0 0 .8ex;border-left:1px #ccc solid;=
padding-left:1ex"><div dir=3D"auto"><div class=3D"m_-5258470342983233997quo=
ted-text"><div data-smartmail=3D"gmail_signature" dir=3D"auto"><br></div><d=
iv class=3D"gmail_extra" dir=3D"auto"><br><div class=3D"gmail_quote">Den 30=
 mars 2017 11:34 skrev &quot;Natanael&quot; &lt;<a href=3D"mailto:natanael.=
l@gmail.com" target=3D"_blank">natanael.l@gmail.com</a>&gt;:</div></div><di=
v class=3D"gmail_extra" dir=3D"auto"><div class=3D"gmail_quote"><blockquote=
 class=3D"m_-5258470342983233997m_7866857421288675809quote" style=3D"margin=
:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div dir=3D"auto">=
<div dir=3D"auto"><div dir=3D"auto">Block size dependent difficulty scaling=
. Hardfork required.=C2=A0</div><div dir=3D"auto"><br></div><div dir=3D"aut=
o">Larger blocks means greater difficulty - but it doesn&#39;t scale linear=
ly, rather a little less than linearly. That means miners can take a penalt=
y in difficulty to claim a greater number of high fee transactions in the s=
ame amount of time (effectively increasing &quot;block size bitrate&quot;),=
 increasing their profits. When such profitable fees aren&#39;t available, =
they have to reduce block size.</div><div dir=3D"auto"><br></div><div dir=
=3D"auto">In other words, the users literally pay miners to increase block =
size (or don&#39;t pay, which reduces it).=C2=A0</div></div></div></blockqu=
ote></div></div><div dir=3D"auto"><br></div></div><div dir=3D"auto">This ca=
n be simplified if we do get a fee pool (less hardfork code, more softfork =
code), except that the effect will be partially reduced by the mining subsi=
dy until it approximately reaches parity with average total fees.=C2=A0</di=
v><div dir=3D"auto"><br></div><div dir=3D"auto">We don&#39;t need to alter =
difficulty calculation.</div><div dir=3D"auto">Instead we alter the percent=
age of the fees that the miner gets to claim VS what he have to donate to t=
he pool based on the size of the block he generated.=C2=A0</div><div dir=3D=
"auto">Larger block =3D smaller percentage of fees. This is another way to =
pay for blocksize. The effect of this is that on average, miners that gener=
ate smaller blocks takes a share of what otherwise would be part of the min=
ing profits of those generating larger blocks.=C2=A0</div><div dir=3D"auto"=
><br></div><div dir=3D"auto">We would need to keep pieces of the section fr=
om above on expected blocksize calculation. Because the closer you are to t=
he expected blocksize, the more you keep. And thus we need to adjust it acc=
ording to usage.=C2=A0</div><div class=3D"gmail_extra" dir=3D"auto"></div><=
/div>
</blockquote></div></div>

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