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From: Natanael <natanael.l@gmail.com>
Date: Thu, 30 Mar 2017 20:41:19 +0200
Message-ID: <CAAt2M1_NhZ5DvK6xSbSRqn5uJQLAgWenLHOKv7OtQ9uQs=Ng_g@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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--001a1149d3d8015628054bf70ab2
Content-Type: text/plain; charset=UTF-8

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.

--001a1149d3d8015628054bf70ab2
Content-Type: text/html; charset=UTF-8
Content-Transfer-Encoding: quoted-printable

<div dir=3D"auto"><div data-smartmail=3D"gmail_signature" dir=3D"auto"><br>=
</div><div 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:n=
atanael.l@gmail.com">natanael.l@gmail.com</a>&gt;:</div></div><div class=3D=
"gmail_extra" dir=3D"auto"><div class=3D"gmail_quote"><blockquote class=3D"=
quote" style=3D"margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1=
ex"><div dir=3D"auto"><div dir=3D"auto"><div dir=3D"auto">Block size depend=
ent difficulty scaling. Hardfork required.=C2=A0</div><div dir=3D"auto"><br=
></div><div dir=3D"auto">Larger blocks means greater difficulty - but it do=
esn&#39;t scale linearly, rather a little less than linearly. That means mi=
ners can take a penalty in difficulty to claim a greater number of high fee=
 transactions in the same amount of time (effectively increasing &quot;bloc=
k 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 miner=
s to increase block size (or don&#39;t pay, which reduces it).=C2=A0</div><=
/div></div></blockquote></div></div><div dir=3D"auto"><br></div><div dir=3D=
"auto">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 th=
e mining subsidy until it approximately reaches parity with average total f=
ees.=C2=A0</div><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 alt=
er 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.=C2=A0</d=
iv><div dir=3D"auto">Larger block =3D smaller percentage of fees. This is a=
nother way to pay for blocksize. The effect of this is that on average, min=
ers that generate smaller blocks takes a share of what otherwise would be p=
art of the mining profits of those generating larger blocks.=C2=A0</div><di=
v dir=3D"auto"><br></div><div dir=3D"auto">We would need to keep pieces of =
the section from above on expected blocksize calculation. Because the close=
r you are to the expected blocksize, the more you keep. And thus we need to=
 adjust it according to usage.=C2=A0</div><div class=3D"gmail_extra" dir=3D=
"auto"></div></div>

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