[Research] Bitcoin After Block Rewards : preventing miner's deviation when the Bitcoin rewards is zero

The paper penned by Junhyuk Lee explores the future implications of Bitcoin's security as block rewards taper off, an issue anticipated to become pronounced by the year 2140. A primary concern highlighted is the potential reduction in miners' profitability due to the halving of block rewards, which may not be counterbalanced by a commensurate increase in Bitcoin prices. This situation poses a critical question regarding how Bitcoin's security framework might evolve when block rewards diminish to zero and ways to mitigate possible deviations by miners from expected behaviors.

Lee identifies a specific threshold, referred to as G_t, which can indicate whether miners are beginning to deviate from their expected roles within the network. The study points out that significant deviations among miners do not solely depend on the block rewards but can also occur due to other factors. One of the more alarming findings is that in a scenario where only transaction fees provide revenue for miners—a pure fee-only regime—deviations could logically occur with fees as low as 0.17% of the transaction values.

To address these challenges, the research proposes several mechanisms. These include establishing a base fee, setting a minimum fee floor, and adapting the size of blocks based on current network needs. While these suggestions are not presented as definitive solutions, they aim to stimulate further discussion and research among experts in the field. For those interested in delving deeper into the specifics of Lee’s research, the paper can be accessed at this link. Lee encourages feedback and additional insights from the scientific community to refine and expand upon these preliminary findings.