Mempool Incentive Compatibility

Mempool Incentive Compatibility

Original Postby instagibbs

Posted on: February 23, 2024 12:13 UTC

The discussion revolves around the economic rationality of large mining pools retaining transactions that pin to the network, despite the competitive nature among pools and the potential for very slight reductions in overall fee values.

The analysis suggests that the justification for such practices is minimal, leading to a somewhat disappointing conclusion for those seeking alternative incentive structures to address transaction pinning issues directly.

The exploration into miner uncertainty reveals a belief that while incentives might not offer a direct solution to the problem of pinning, they present an area worth investigating further. This perspective is grounded in previous efforts to model potential incentive curves aimed at mitigating pinning concerns. However, these models only appear effective under aggressive implementations, indicating the complexity and challenge of developing incentive-based solutions to the pinning phenomenon within the blockchain ecosystem.