Post
Topic
Board Economics
Re: demurrage instead of fees
by
dannyjpw
on 24/02/2011, 22:11:53 UTC
In a highly competitive market, transaction fees, and more worryingly, the network's hash/s, will converge towards zero. 

This is because a miner who discovers a new block only has to pay for the cost of proof-of-work, not for the cost of bandwidth and storage associated with that block. 


Absolutely correct, IMO. Classic externalization of costs.