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So to answer your question, my view is that IBLT would not affect the health of the fee market (but it would reduce fees overall).
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I think this unclear and could be misconstrued. This is the fee per transaction you are talking about, correct? As no one really knows about the total amount of fees without assumptions about the demand curve.
You're correct; I am talking about the average fee per transaction. I suspect that
total fees per block would continue to increase with block size, as they have done historically.