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EstimateBlockFee |
Denote the following:
Empirically the wealth distribution follows exponential distribution. Because the average BTC balance must be 21000000/A, f is of exponential distribution with average mean 21000000q/A/n; note that different wealth distribution assumption is the same reasoning logic with a different multiple factor to the average fee. While nAT transactions compete for the block space who has the capacity of NT transactions, F is contributed by the higher-fee NT transactions among the nAT transactions. In other words,
where
Therefore
with a multiple factor of 1-Ln(N/n/A) to the average fee and F as a monotonically increasing function of N/n/A:
No need for competition when As to q, its value results from the stochastic context of money flow as mentioned in time preference. When Albert sells something for a customer's purchase next day, he faces the risk the committed money of production may cause his shortage if an irrelevant shit happens today, a surcharge of transaction fee to mitigate the risk of insolvency. Whatever the money is, the tendency for transaction and fee shall be the same; imagine an old fiat is replaced with another new fiat of different nominal by the government, all the tendency of transaction and fee shall be the same regardless the price of the fiat and its volume. Therefore q is supposed to be stable than other parameters and is treated as a constant; block fee shall be therefore stable unless the evolution of the money flow in the society becomes much certain, other than that, it is difficult to persuade people from changing its value because this might be Charles Darwin's call. The average block fee is 1.9977 irrelevant with N and the price and the number of users, contrary to those who claim big blocks will have more block fee and those who claim the more users the higher the price; these intuitions are right when there is backlog but then it means the relevant parameters n and A are not yet settled down so the phenomenon is only temporary.
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