It's because of this:
I actually think that transaction fees will be enough to support the miners without subsidy, because the miners will only process transactions with the highest fees. This will turn transactions into bidding wars, and it will become extremely expensive to get a transaction included in a block.
This is why I don't think a fixed block reward system will be sustainable long term, because as inflation trends to zero, miners will be less satisfied with the reward and become more picky with tx fees. We need a proportional (percentage based) inflation. However, I'm not sure how much would be suitable.
With the same concerns in mind, there should be a reasonable cap on transaction fees (perhaps as a percentage of block reward). Transactors shouldn't be able to pay a higher fee, as this encourages the issue.
I actually think that transaction fees will be enough to support the miners without subsidy, because the miners will only process transactions with the highest fees. This will turn transactions into bidding wars, and it will become extremely expensive to get a transaction included in a block.
This is why I don't think a fixed block reward system will be sustainable long term, because as inflation trends to zero, miners will be less satisfied with the reward and become more picky with tx fees. We need a proportional (percentage based) inflation. However, I'm not sure how much would be suitable.
With the same concerns in mind, there should be a reasonable cap on transaction fees (perhaps as a percentage of block reward). Transactors shouldn't be able to pay a higher fee, as this encourages the issue.