Meni
Thanks for this great proposal. Please could you explain how the rollover fee pool helps out and why the penalty cant just be burnt? Which would be more simple.
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.
This is only (potentially) a problem in my 2012 rollover fee proposal. Here, tx fees don't go into the pool - fees are paid to the miner instantly. It is only the miner's block size penalty that goes in to the pool, and he must pay it if he wants to include all these transactions.
Just so I can understand properly, your penalty is related to a formula that excludes the transaction fees, therefore paying fees out of band won't reduce the penalty. Is that how the problem is solved?
I think this idea seems really good, but I need to think a bit more.