Some miners at OCEAN have began making use of the Coin Age Precedence algorithm throughout block template building utilizing DATUM. Initially, Bitcoin Core initially chosen transactions to incorporate in blocks based mostly on what that they had seen first of their mempool. This logic was ultimately changed by prioritizing older cash, i.e. that had been sitting round unspent longer, over different cash. This was ultimately solely utilized to a small portion of the blockspace, after which ultimately executed away with fully across the time of Segwit. It’s nonetheless maintained in Bitcoin Knots.
I can solely speculate as to the motives of the miners doing this, however given OCEAN’s rhetoric I can guess that it has one thing to do with prioritizing “monetary” transactions over others. Even when not, even whether it is purely to assist small worth UTXO homeowners, it’s nonetheless each bit as irrational.
You may partition blockspace as a miner nevertheless you need, and prioritize ordering of transactions nevertheless you would like inside these partitions, but it surely doesn’t change the truth that blockspace is a fungible good being valued on an open market. If standards apart from the feerate are used to resolve which transactions to incorporate, you’ll depart cash on the desk. The one scenario the place that might not be true is one the place these standards have been 1:1 similar to deciding based mostly on feerate, which might be a meaningless standards.
Making a subsection of blockspace chosen for by different standards finally accomplishes two issues: 1) leaving cash on the desk as a miner, as definitionally any significant non-feerate standards leads to gathering much less charges, and a couple of) create a bucket of blockspace submitted to aggressive “price” pressures in line with no matter completely different standards is used, with none of that stress creating direct income will increase for miners utilizing this new standards.
The brand new subsection of blockspace doesn’t finally cut back price stress, it merely leaves them making much less cash and customers making the most of this new transaction choice standards subjected to completely different aggressive pressures miners don’t straight profit from.
You may’t conceal from the truth that blockspace is a fungible good priced on the open market. You may settle for that, or you possibly can lose cash. The one different is to futilely attempt to censor courses of transactions you don’t like, and for those who occur to succeed, you destroy a core property of Bitcoin within the course of.
Mining staying decentralized, broadly distributed with many small operators, is important for Bitcoin’s censorship resistance. It’s a disgrace to see indicators like this of such smaller miners being economically irrational, on condition that it has large implications for his or her success long run.
This text is a Take. Opinions expressed are fully the writer’s and don’t essentially mirror these of BTC Inc or Bitcoin Journal.
