Post
Topic
Board Bitcoin Discussion
Re: Bitcoin Decentralization Fund - subsidizing small mining pool operators
by
jaked
on 04/01/2014, 08:01:19 UTC
We are all interested in preventing 51% and/or 26% attacks.

Let's discuss whether or not it is feasible to subsidize small mining pool operators (those with 5-25% of the mining power) to make it more profitable for miners to switch away from large pools. I am not terribly familiar with the various numbers you'd need to make this calculation, so I invite the community to try to figure this out.

I am sure many of the early adopters would be willing to donate to protect the value of their BTC. This can be a dynamic process, with subsidies scaling up with "centralization alert" level and scaling down as the pool gets closer to the 25% maximum.

I look forward to hearing what everyone thinks.

I'd rather fund research & development to prevent such attacks.
Subsidizing behavior is brittle and temporary. The protocol itself should protect against such attacks.