In the long-run the miners are all going to have their own rules on the fee schedules; the best we can do is set the default rules with the expectation that one day they will become ignored.

It will be in the big miners interest to make the most amount of profit ( Sum[of all fees] ).  This might be a smaller number of transactions, but each transaction taking a large fee, or many many small fee transactions.


I propose that the fee schedule is:

A: (optional) first 100KB open to any transactions  -  this is not adjusted no-matter the block size/fees, the miner can optionally not include any free transactions.

B: (recommended) next 100KB given to highest fee transactions - a miner must include up-to 100KB of the highest fee transactions. (I don't know if you could enforce this)

C: (enforced max) Based upon the average of part B over the last 100 blocks, if you can accept transactions up to:

Max size of Section C = (Total fees in B section)/(AVG free last 100 B sections) * 100KB

Total Max:  Must not be over 100x AVG size of last 6 blocks.  (can grow very large very quickly, if those making the transactions are willing to pay for it)


Why I propose the above schedule:

1.  Has a 'no-cost, but limited size area for any transactions of the miners choice... eg the Miner can Choose to include transactions from his buddies for no transaction fee. (Section A)

2.  Top priority transactions have a dedicated place in every block to compete for. (section B)

3.  If there is a strong demand for fee paying transactions then the the blocks will scale quite large very quickly (aka Christmas shopping)

4.  The total fees must always be significantly more than the average for very large blocks.


I have put quite a bit of thought into this fee schedule, I would love the forums comments on it.

Overall, whatever we what decide will not matter as one day the big miners will decide for themselves... This is just my best guess about what will fit with the natural economics of bitcoin.