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Cluster Mempool RBF Thoughts

Cluster Mempool RBF Thoughts

Original Postby sdaftuar

Posted on: December 5, 2023 22:51 UTC

Understanding the algorithm for transaction replacement in a mempool is crucial, especially when considering the implications of Replace-By-Fee (RBF) policies.

When a new transaction with a higher fee rate comes into play, it can lead to the eviction of existing transactions in the mempool. This process requires careful consideration, as not only the incoming transaction but also all previously clustered transactions that are affected by this eviction need to be reassessed.

The correct approach involves recalculating the fee rates after accepting an RBF transaction. This recalculation must account for the changes in the mempool's composition. The clusters of transactions that were previously established based on certain assumptions may no longer hold valid once the RBF transaction has been added. As such, the entire set of old clusters influenced by the evictions should undergo a re-linearization process. This ensures that the fee rates accurately reflect the current state of the mempool, including any knock-on effects caused by the eviction and addition of transactions.

Neglecting to re-linearize these old clusters would result in an inaccurate representation of the mempool's state. It could potentially lead to suboptimal decisions when future transactions are considered for inclusion or when crafting blocks from the available transactions in the mempool. Thus, maintaining an accurate and up-to-date fee rate diagram is essential for effective transaction selection and mempool management in the presence of RBF scenarios.