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Author Topic: The Economics Of the Fee Market With LN & Restricted Block Size  (Read 185 times)
spartacusrex
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May 04, 2017, 03:38:42 PM
 #1

If / When / Once LN is active, will the miners make more / less / the same money out of the fees.. ?

The simple analysis says that larger blocks = more txns = more fees.

But that seems all wrong, as the fee market from FULL blocks is what is making the miners MUCH more money at the moment..

So - any ideas what will actually happen ?

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X-ray
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May 04, 2017, 03:47:36 PM
 #2

If / When / Once LN is active, will the miners make more / less / the same money out of the fees.. ?

The simple analysis says that larger blocks = more txns = more fees.

But that seems all wrong, as the fee market from FULL blocks is what is making the miners MUCH more money at the moment..

So - any ideas what will actually happen ?


I don't think so, In my understand if LN likes online escrow. The transaction fees reward will be less due to the LN activation.

Full blocks = Competition to put high fees for every transaction = Miners will be rich.

Here's the proof
https://blockchain.info/charts/transaction-fees


     
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Nagadota
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May 04, 2017, 04:00:01 PM
 #3

The simple analysis says that larger blocks = more txns = more fees.

But that seems all wrong, as the fee market from FULL blocks is what is making the miners MUCH more money at the moment..
It really is impossible to analyse.  The fee market would be less competitive with larger blocks and transaction fees for them would probably be lower, but the less profitable mining is, the less people mine and therefore it becomes more profitable again - it's self-regulating so any changes won't change the revenue relative to hashrate too significantly.

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