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Author Topic: Slasher-Based Consensus on Transaction Fees  (Read 359 times)
mirelo (OP)
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February 05, 2014, 11:34:06 AM
Last edit: February 06, 2014, 10:14:30 AM by mirelo
 #1

Here is a proposal for achieving consensus on transaction fees, based on the Slasher[1] algorithm:

1. Fees would come from proof-of-stake blocks but would be voted for in each proof-of-work block.
2. Miners voting for lower fees in their proof-of-work blocks would have a higher probability of mining a proof-of-stake block.
3. Mined proof-of-stake blocks would select the fees voted for in the proof-of-work blocks providing their signing privileges.

This would create two opposite incentives for miners when voting for fees:

1. Higher fees would increase their profit when mining a proof-of-stake block that included those fees.
2. Lower fees would increase their chances of mining a proof-of-stake block.

So transaction fees should remain within a reasonable interval.

[1] http://blog.ethereum.org/2014/01/15/slasher-a-punitive-proof-of-stake-algorithm/



EDIT: There is a flaw in this proposal: miners with no long-term commitment would have an incentive to vote on arbitrarily lower fees merely to increase their mining probability while still enjoying the current, higher fees.
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