https://bitcointalk.org/index.php?topic=1125214The fees will increase until legitimate traffic is less than half the block size.
Anyone paying less fees will see transaction times that SUCK as you say.
This is because someone is executing a Golden Ratio Attack. They are making a profit on the so-called "Stress Test" and will continue it forever. I have no idea how to stop it. This is serious.
It seems that the OP (yourself) has edited the thread title, I was a bit interested in how the Golden Ratio Attack was executed and from what I can surmise it is a mining ROI through higher transaction fees reading through the comments in the other thread, in a sense that would work as Satoshi did plan on transaction fees at some point in time transitioning and replacing the reward for discovering blocks accelrating that process involves an increase in mining fees but in addition to the stable block rewards pools would have an incentive to keep the fees high, the issue would not be a concern usually but in the case of space limitations it does present a possible problem and issue.
Not a bad idea in any sense as it could have happened when Ghash.io was near 50% but it looks like Gmaxwell came in and did some math but the concept looks like it has feet in my opinion.
Especially if a consortium of pools decided to group together to perform and execute this attack at cost to maintain a new quo in which case the honest miners would still make more but through block discovery on average the attackers would discover the transactions and reward themselves in the long run.
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Lets imagine your mine with half hashpower. Lets imagine that a block can contain 6000 transactions. Attacker has 1/2 hashpower. Offered load is 4000 tx/block.
Attacker crafts 2000/tx block at 1coin/tx fee level. Making the rest match him (plus episilon, which we'll disregard).
His average cost for spam is 1000 coin/block (2000 * 1-rate).
His average income is 2000 coin/block (4000 * rate). (He doesn't get income from his spam, he saves its cost however; see prior line)
His net income is 1000 coins/block, on average.
Now consider the consolidation of other miners:
Their average cost for spam is 0.
Their average income is 3000 coin/block (6000 * (1-rate)).
Their net income is 3000 coin/block.
Both groups have 50% hashrate, so the non-attacking miner has a fee income of three times greater the attacking miner per unit hashrate!
Normalized for hashrate thats 2000 vs 6000.