I posted this on reddit, but figured I would cross-post here.
I think I understand the concept here, basically a large pool can flood the network with transactions to boost the average txn fee paid by legit users. They can potentially make more than they spend because they get back the fees on the spam transactions they create.
What I don't get is why the large spamming pool has an advantage over a small non-spamming pool in this scenario? The non-spamming pool pays nothing and gets to collect profit on both the spam transactions from the big pool and the normal txn fees from legit users, while the big pool only gets to record a profit on the legit txns, plus they have to pay out the spam txn fees to other miners for any blocks they don't solve. Anyone care to clarify where I am going wrong here?