Package aware Fee estimator post cluster mempool

Package aware Fee estimator post cluster mempool

Original Postby ajtowns

Posted on: December 25, 2023 10:42 UTC

In the process of transaction fee estimation, a systematic approach has been outlined where transactions are segregated into chunks with respective feerates assigned based on the time they are set to be processed.

The sequence begins at 0600 hours with chunk A allocated a feerate of 20 satoshis per virtual byte (sat/vb). At 0800 hours, another evaluation takes place, adding chunk B alongside A and increasing the feerate to 50 sat/vb. Following this, at 1000 hours, chunk C is added to the lineup with A and B, and the collective feerate is adjusted to 80 sat/vb.

A more complex scenario unfolds at 1500 hours, wherein multiple chunks are assessed with varying feerates; chunks A and D are paired together at a feerate of 100 sat/vb, while chunk B is separately appraised at a feerate of 90 sat/vb, and chunk C at 85 sat/vb. This arrangement implies that chunks B, C, and D are all engaged in a Child Pays for Parent (CPFP) transaction with chunk A, but chunk D commits to a significantly higher feerate than either B or C.

The proposal suggests that although chunks B and C have been present in the mempool since 0800 and 1000 hours respectively, their effective consideration for mempool duration should commence from 1500 hours onwards at their respective updated feerates of 90 and 85 sat/vb. This method implies a dynamic evaluation of transaction fees relative to the time-dependent composition of the mempool and the associated feerates at which transactions are processed.