mister_monster on Nostr: Yeah, that's true. You want there to be at least equilibrium price pressure on ...
Yeah, that's true. You want there to be at least equilibrium price pressure on transaction fees. If the block size is say a steady state mean of the average block demand, you'll get optimal but you'll get swings in price and fullness during low demand, and the opposite in high demand. On average the miners will do fine, but they'll have volatility in their returns.
But demand isn't steady state, so there's no real way to calculate that ahead of time.
Consistently lower than demand sizes just dicincentivizes use. It reduces utility. Consistently higher than demand size disincentivizes mining. Always close to the mark size to demand ratio optimizes miner income (and therefore security) and increases utility.
The Monero dynamic size accounts for this need for always wanting slightly higher demand than supply, it has a function where block size increases *cost miners* to do, so they only do it if the mempool back up is big enough to make up for that and then some. The block size only goes up when your concern isn't the case, it is always profitable in Monero to raise the size, or the size doesn't go up. You should really really learn the details of it, it is very interesting, I think you'd love it. Also queuing theory, it's a bit complex but very important to understand on this topic, you don't have to understand it in detail, just the basics.
But demand isn't steady state, so there's no real way to calculate that ahead of time.
Consistently lower than demand sizes just dicincentivizes use. It reduces utility. Consistently higher than demand size disincentivizes mining. Always close to the mark size to demand ratio optimizes miner income (and therefore security) and increases utility.
The Monero dynamic size accounts for this need for always wanting slightly higher demand than supply, it has a function where block size increases *cost miners* to do, so they only do it if the mempool back up is big enough to make up for that and then some. The block size only goes up when your concern isn't the case, it is always profitable in Monero to raise the size, or the size doesn't go up. You should really really learn the details of it, it is very interesting, I think you'd love it. Also queuing theory, it's a bit complex but very important to understand on this topic, you don't have to understand it in detail, just the basics.