Unbreaking testnet4

The discussion centers around an innovative approach to managing the dynamics of blockchain technology, specifically addressing challenges related to block rewards and mining difficulty. The proposal suggests a modification in the distribution of coinbase block rewards in instances where the mining difficulty is reset. This adjustment aims to balance the reward distribution when the actual mining difficulty is recalibrated to a lower threshold, for example, reset to 1,000,000. In such scenarios, if a CPU miner successfully mines 50.01 tBTC under the adjusted difficulty level, the miner would be awarded 5,001 satoshis directly.

Furthermore, the proposal outlines methods for handling the remaining portion of the block reward. Two main strategies are presented: timelocking the excess rewards for future block numbers or outright burning the surplus. Timelocking refers to the process whereby the additional rewards are reserved and made accessible only at a specified future block number. Alternatively, burning the excess rewards is considered simpler to implement and involves permanently removing the surplus from circulation, thereby potentially influencing the currency's value.

This approach presents a nuanced method of maintaining balance and fairness in the blockchain ecosystem, especially in light of the challenges posed by differing hardware capabilities among miners. The conversation reflects ongoing efforts within the Bitcoin development community to enhance the protocol's efficiency and equity, as evidenced in discussions within platforms like the Google Groups "Bitcoin Development Mailing List."