Post
Topic
Board Development & Technical Discussion
Topic OP
the zatoichi fee recovery rate bitcoin enhancement
by
zatoichi
on 29/12/2013, 23:10:42 UTC
I propose that a fee recovery rate field be added to the bitcoin header. The purpose is to guarantee adequate competition and blockchain security. The fee recovery rate will default to 100 percent. This allows the processor to recover 100% of the included fees for transactions processed. If the network size falls below an "ideal" level, the fee recovery rate is reduced along a defined curve. The value of the fee recovery rate at network size one (monopoly) is zero (e.g. no recovery) . This prevents a transaction processor from becoming a monopoly in that as  a transaction processor reduces its pricing below competitive rates, the fee recovery rate reduces their profit. The exact size of the "ideal" network is yet to be determined. The method to determine if the network size is below the ideal is yet to be determined. The curve for the reduction of the fee recovery ratio is yet to be determined. The field will probably not be required until 2140 when all activity is paid for by transaction fees but may then be essential to prevent a monopoly. Of course, this might not prevent a processor from "shooting the moon" (taking a loss in order to control the blockchain).