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Author Topic: Anti fee Sniping and Long term fee market. Am I missing something?  (Read 42 times)
Ambatman (OP)
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July 25, 2026, 06:30:05 PM
Merited by ABCbits (2)
 #1

I recently came across fee sniping and made me go deep into the rabbit hole of long term fee feasibility.
In the process I stumbled on Bitcoin cores anti fee nlocktime and BIP 326.
While I understand the basic idea I'm struggling to reconcile withhow fee sniping is usually described.

From what I have gathered:

Nlocktime is a consensus field that determines transaction finality
While Bitcoin core implemented Nlocktime to Current block height as wallet policy.

BIP326 is a wallet standard for taproot that recommend consistent use of nlocktime and nsequence for improved  privacy.

Now where my confusion comes in.

Imagine we in the future where block reward is now 0 or nigh.
And miners are compensated almost entirely by transaction fees.
Let's assume we have only two transactions
Code:
Alice 5 BTC Bob 4BTC
Miner A includes all transactions
Block 10-Block 11
Block 11 contains  Alice 5BTC and BOb 4 Btc making total =9
Since no reward it's total income becomes 9btc.

Miner B

Honest and goes to Mine Block 12 since Alice and Bob are already confirmed he has nothing (we assuming only two)

Now he can take another route and pretend Block 11 doesn't exist and try mining Block 11
And also place Alice and Bob
And if they win Miner A loss all while they earn 9 Btc.
This is Fee sniping which can occur during the window before another block is mined.

Now let's introduce nlocktime.
Say immediately after Block 11 is mined Mars creates a new translation fee 2Btc
Where his wallet uses anti fee sniping nlicktime.
So the transaction is only eligible for the next Block Block 12.

Honest miner
Mine Block 12 and include Mars 2btc and miner b gets 2btc as a reward.

Fee snipe.
Because of the nlocktime placed by Mars Miner B can't include it to his Block 11
And gains just the 9btc which Is more profitable than honest.
But if Mars didn't have an nlocktime miner B could add and if he wins gains 11BTC.
The attack becomes more attractive.

So from what I could pick nlocktime stops the attacker from making more profit
It doesn't necessarily stops fee sniping.

Am I getting it wrong? Or is there something I'm missing and also has better precaution been established?
I would assume that any wallet that allows advanced control can make it possible to manually set the nlocktime
And is it possible to know a wallet that doesn't?


I believe we understand that the fee and Block are just examples

Clarity would be Appreciated. Thank you.

I understand it's rough but I almost summarise halfway because it was getting longer than I anticipated  Cheesy

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