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Date: Sun, 3 Jul 2022 05:43:53 -0400
From: Peter Todd <pete@petertodd.org>
To: Kate Salazar <mercedes.catherine.salazar@gmail.com>,
 Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
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Cc: Billy Tetrud <billy.tetrud@gmail.com>
Subject: Re: [bitcoin-dev] Bitcoin covenants are inevitable
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On Wed, Jun 29, 2022 at 12:44:11PM +0200, Kate Salazar via bitcoin-dev wrot=
e:
> > On an idealistic level, I agree with Keagan that it would make sense to
> > have "a balance of fees to that effect". I think doing that would be
> > technically/economically optimal. However, I think there is an enormous
> > benefit to having a cultural aversion to monetary inflation and the
> > consequences of convincing the bitcoin community that inflation is ok c=
ould
> > have unintended negative consequences (not to mention how difficult
> > convincing the community would be in the first place). There's also the
> > economic distortion that inflation causes that has a negative effect wh=
ich
> > should also be considered. The idea of decaying utxo value is interesti=
ng
> > to consider, but it would not solve the economic distortion that
> > monetary inflation causes, because that distortion is a result of monet=
ary
> > devaluation (which decaying utxos would be a form of). Then again, mayb=
e in
> > this case the distortion of inflation would actually be a correction -
> > correcting for the externality of benefit received by holders. I'm
> > stream-of-consciousnessing a bit, but anyways, I suspect its not worth =
the
> > trouble to perfect the distribution of bitcoin blockchain security cost=
s to
> > include holders. Tho, if I were to go back in time and influence how
> > bitcoin was designed, I might advocate for it.
> >
>=20
> Pool operators are free to request larger fees from older utxos, or from
> all utxos, or from newer utxos, at their judgement, looking at the
> blockspace demand census and at what the other pool operators are doing.
> This is not consensus, it's policy. It's not a technology problem, it's
> solved above in the social layer.

If pool operators can easily collude like you are proposing, we have a seri=
ous
problem with pool centralization.

What you would actually expect in a healthy Bitcoin ecosystem is for some p=
ool
operators to defect, and them winding up mining those transactions for
market-based fees, eventually forcing the pool operators who are trying to
charge a discriminatory premium to give up.

--=20
https://petertodd.org 'peter'[:-1]@petertodd.org

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