Post
Topic
Board Development & Technical Discussion
Re: Elastic block cap with rollover penalties
by
tacotime
on 03/06/2015, 03:09:57 UTC
Isn't it precisely what is implemented in Monero? (except you don't have a rollover pool, the penalty is simply deducted from the block reward for good).
No idea what happens in Monero, but if so, more power to them.

Yes. There is a quadratic penalty imposed for blocks above the median size (with a maximum size of 2 * median(size of last 400 blocks)), with a dynamic, elastic block sizing algorithm. Unlike Meni's suggestion, the reduction in block subsidy is not given to a pool but rather deferred to future miners because the subsidy algorithm is based around the number of coins.

See section 6.2.3 of the CryptoNote whitepaper: https://cryptonote.org/whitepaper.pdf

It was one of the most criticized components by the Bitcoin core developers, but so far testing on the mainnet and testnet has failed to evidence any failures.

There is a major shortcoming I can see in the rollover fee pool suggestion: miners are incentivized to accept fees out of band so they can obtain all the highest fees instantly, thus defeating the entire purpose of that feature.