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

Lee emphasizes the critical issue of diminishing miner profitability due to the halving of block rewards, which may not necessarily be compensated by equivalent rises in Bitcoin prices. This dwindling profitability could significantly affect the stability and reliability of the mining operations, which are fundamental to the network's security.

Lee introduces a metric known as G_t that serves as an indicator for identifying when miners might start deviating from their predicted behavior within the blockchain network. The study underscores that such deviations could stem not only from changes in block rewards but also from other influencing factors. It particularly notes that significant deviations might occur in scenarios where miners are solely compensated through transaction fees, highlighting that such deviations could arise even when fees are as low as 0.17% of transaction values.

Furthermore, the paper discusses potential solutions to mitigate these risks associated with reduced block rewards. One proposed solution is the implementation of a floor fee compatible with soft-forking techniques, which could help stabilize revenue streams for miners. Additionally, it suggests a more comprehensive strategy combining tail emissions with an EIP-1559 style fee burn and priority tipping system. This multifaceted approach aims to address various facets of transaction fees and ensure the sustainability of the network's economic model. For further details on this analysis, the original content can be accessed here.