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Working Abstract:
In the context of the volatile-reward model, the miner’s instant reward for successful mining and proposition of a block is the sum of said block’s transaction’s included fees. Being inherently volatile, it is then considered how to stabilize the miner’s reward such for continued participation and maintaining of the distributed ledger. Independently, another present problem is the consideration of how to constitute “fairness” of transaction ordering; the transactions as they are to appear in a block once added to the ledger. Such to surmise a sustainable approach which favorably rests with the aforementioned consideration, we want to balance not only the precedent of early arrival, but additionally the “urgency” of a transaction; we deduce said urgency is reflective of its attached transaction fee. This second consideration is the means for which the action of our solution to the first problem lies; a collectivized pool which captures a fraction of a miner proposer’s instant reward based on its deviation from the “fairness” of the ordering for which we dictate. Said pool is ultimately a means of replicating the stability of the reward to the miner under the volatile-reward context, whilst having the additional benefit of enforcing an ordering for which we believe to be fair.
Collaborators:
Prose Overview:
Basically I’m making the argument that the chaotic economics of the PoW blockchain under the volatile-reward model is the consequence of three comprehensive variables: “transaction fee rate”, “security cost”, and the “natural incentive”, the definitions of each beheld to the context of the paper. In asserting this, I posit ways (and define components) of what the ever-elusive “sustainability” looks like, not as environmental sustainability, nor any arbitrary network health metric, but rather: as (to maintain) a low fluctuation of the three aforementioned variables such to maintain the balance of power between the miners and senders, such to facilitate a stable, constant throughout of transaction validations on-chain. This low-fluctuation being achieved by means of security measures (outlined later) such to prevent a disturbance to said balance of power. Thus, maintaining ‘sustainability’ means creating a network protocol whereas these security mechanisms are present.