Increasing transaction fees for future mining

[dominicus]

Are there any good estimation models of increase in transaction fee payouts to miners?

What is the view for future transaction volumes and per-block payout?

I find countless charting focused exclusively on new-block payout and ROI, yet none I've reviewed attempts to account for transaction fees partially counter-balancing the drop in payout rate.

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[jhansen858]

No one knows.  They have not decided how to decide what the fees will be.  I suspect it will end up being about 1% at the end of the day.

[dominicus]

No one knows.  They have not decided how to decide what the fees will be.  I suspect it will end up being about 1% at the end of the day.

Woa.... a 1% bounty on network transactions could turn out to be quite a bit of dough even with a modest 10% turnover of BTC circulation per week.  That comes out to 40+ BTC/block.

[DigitalHermit]

No one knows.  They have not decided how to decide what the fees will be.  I suspect it will end up being about 1% at the end of the day.

Woa.... a 1% bounty on network transactions could turn out to be quite a bit of dough even with a modest 10% turnover of BTC circulation per week.  That comes out to 40+ BTC/block.

That's quite a stretch from where we currently are (about 30 BTC per day):

https://blockchain.info/charts/transaction-fees

There does seem to be at least some correlation between fee amounts and the exchange rate of BTC into government fiat. So if the exchange rate begins climbing again, perhaps we will see a comparable boost in transaction fees again.

[BombaUcigasa]

No one knows.  They have not decided how to decide what the fees will be.  I suspect it will end up being about 1% at the end of the day.

Woa.... a 1% bounty on network transactions could turn out to be quite a bit of dough even with a modest 10% turnover of BTC circulation per week.  That comes out to 40+ BTC/block.

Yes, usually Bitcoin requires less than 1% fees for your total transactions, usually in fast sequential transfers and very small sums. A casual high value participation will not incur fees at all.

[dominicus]

No one knows.  They have not decided how to decide what the fees will be.  I suspect it will end up being about 1% at the end of the day.

Woa.... a 1% bounty on network transactions could turn out to be quite a bit of dough even with a modest 10% turnover of BTC circulation per week.  That comes out to 40+ BTC/block.

Yes, usually Bitcoin requires less than 1% fees for your total transactions, usually in fast sequential transfers and very small sums. A casual high value participation will not incur fees at all.

Well, I sure hope there's some deliberate thought process around transaction fees.

There's this delicate balance between mining -net- profitability, transaction fees BTC/fiat, and network health in the face of volume growth.

Seems to me a sensible mining regime wrt transaction fees will become critical.  Should ensure enough incentive is in the system to keep the distributed nature of Bitcoin.

[BombaUcigasa]

Should ensure enough incentive is in the system to keep the distributed nature of Bitcoin.

Right now that's called the block reward of 25 BTC and is shared by miners.

[dominicus]

Should ensure enough incentive is in the system to keep the distributed nature of Bitcoin.

Right now that's called the block reward of 25 BTC and is shared by miners.

Bomba, I was concerned about the future upon new coin reward phases out, and transaction fees replace this as an incentive to continue spending computational effort to create new transaction blocks.

Last 24hrs, 5,400 BTC were created and 23 BTC were passed to miners in txn fees.

Question was about future expectation of txn fees per block, and dynamics of how this increase would occur

[t3xasdolly]

As a minner, you can include only transaction with high fees, but i think it is short sighted.

[BombaUcigasa]

Bomba, I was concerned about the future upon new coin reward phases out, and transaction fees replace this as an incentive to continue spending computational effort to create new transaction blocks.

Me too, so let's look at this limited information:
http://blockchain.info/charts/transaction-fees
http://blockchain.info/charts/transaction-fees-usd

While the miners' cut in token form is rather stable across various Bitcoin valuations, the extra popularity and value of Bitcoin could provide a proportional relationship so the efforts are rewarded correctly.

As seen above, for values of 20 USD/BTC, fees were around 500 USD, for values of 250 USD, fees were around 8000 USD and for values of 60 USD, fees were about 2500 USD. Would this satisfy your concern?

[byronbb]

Miner's as a whole will need to develop products that utilize the blockchain in the satoshidice manner.